The yuan hit a record high against the dollar on Monday, reversing the morning's fall and in spite of a slightly lower mid-point fixing as the market braces for further losses in the dollar. Spot yuan closed at a record high of 6.4450 against the dollar, firmer than 6.4455 on Friday. It has now appreciated 5.91 percent since it was depegged from the dollar in June 2010 and 2.22 percent so far this year.
Before trade began the People's Bank of China fixed the yuan's mid-point at 6.4503, down slightly from Friday's historical high of 6.4495. Offshore, benchmark one-year dollar/yuan non-deliverable forwards (NDFs) were bid at 6.3820 at midday, down slightly from 6.3910 at Friday's close. Their implied yuan rise in a year's time rose to 1.07 percent from 0.93 percent.