The yuan touched a record high against the dollar on Tuesday, as the People's Bank of China set a new peak for the mid-point for the fourth straight session after the dollar index fell to a three-week low. Before trade began, the PBOC set the yuan's daily mid-point at a record high of 6.4845 against the dollar, from Monday's 6.4856.
The central bank uses the mid-point to guide the currency. Spot yuan hit a fresh peak of 6.4780 versus the dollar in late trade before closing at 6.4791 compared with Monday's close of 6.4829. The Chinese currency has now appreciated 5.36 percent since it was depegged from the dollar in June 2010, and 1.71 percent since the start of this year.
In nominal terms, the yuan has risen only 0.2 percent this month, less than gains of 0.9 percent in April and 0.4 rise in March, respectively. Offshore, one-year non-deliverable forwards (NDFs) were bid at 6.3575, little changed from 6.3600 at Monday's close. Their implied yuan appreciation in a year's time was 2.0 percent.
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