China's yuan strengthened on Monday to end at 8.0864 per dollar, the highest close since its July revaluation, with dealers saying the central bank was tolerating mild rises.
The yuan, which was revalued by 2.1 percent to 8.11, has now appreciated a further 0.29 percent. It hit its previous post-revaluation closing high of 8.0871 on September 16.
"The central bank has made it clear that it will allow the yuan to move in a wider range since the revaluation," said a Shanghai-based dealer at a foreign bank.
Some dealers said the central bank might allow the yuan to rise this week to surpass the post-revaluation intraday high of 8.0860 set on September 23 because of US Treasury Secretary John Snow's visit to China this week.
The yuan weakened to close at 9.8120 to the euro versus Sunday's 9.7848 and eased to end at 7.1166 per 100 yen from 7.0862, the central bank said on its Web site.