The yuan closed up against the dollar on Tuesday, hitting an all-time trading peak late in the session, as the People's Bank of China fixed its reference rate at a new high for the fifth straight day, a sign Beijing may be engineering a "mini-revaluation" of the Chinese currency, traders said.
Chinese opinion toward a stronger yuan has dramatically changed since a political struggle in the United States threatened to cause a US debt default end of July, followed by a downgrade of the US credit rating by Standard and Poor's. The official China Securities Journal said in a front-page editorial on Tuesday that the time "is ripe" for China to widen the yuan's trading band versus the dollar, which will pave the way for a more flexible yuan exchange rate.
Spot yuan closed at 6.3828 per dollar, up from Monday's close of 6.3904. It has now appreciated 6.94 percent since it was depegged from the dollar in June 2010 and 3.24 percent so far this year. It hit an all-time trading high of 6.3820 just seconds before the market close. On Tuesday, the central bank fixed the mid-point at another record high of 6.3925, up from Monday's historical high of 6.3950, although some traders noted the fixing came after a weakening of the dollar in global markets.
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