The yuan hit a fresh trading peak against the dollar on Thursday, testing a level stronger than 6.53 for the first time, after the People's Bank of China fixed another record high yuan mid-point as the government uses the currency to help fight imported inflation.
Over the past nine trading days, the PBOC has allowed the mid-point, or its reference rate from which dollar/yuan can rise or fall 0.5 percent in a given day, to hit record highs nearly every day except for a slight pullback on Tuesday. Spot yuan closed at 6.5315 against the dollar, up from Wednesday's close of 6.5340. The currency hit an all-time high of 6.5298 in afternoon trade, toppling the previous record of 6.5317 hit on Wednesday and having appreciated 4.53 percent since it was depegged in June 2010, and 0.91 percent so far this year. Offshore, one-year non-deliverable forwards were bid at 6.3770 in late trade, up slightly from 6.3740 at Wednesday's close. Their implied yuan appreciation in a year's time edged lower to 2.46 percent compared with 2.50 percent.
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