The yuan hit a record high against the dollar on Monday after the People's Bank of China fixed a historically strong mid-point, but the market remained cautious about the pace of yuan appreciation. Dealers said the Chinese currency had the potential to rise further, but the pace of gains had become less clear as pressure eases from rising global commodity prices.
Spot yuan hit a record high of 6.4599 on Monday, stronger than Friday's close of 6.4649. It has now appreciated 5.67 percent since it was depegged from the dollar in June 2010 and 2.13 percent so far this year. Before trade began the PBOC fixed the yuan's mid-point at a record high of 6.4661 against the dollar.
Offshore, benchmark one-year dollar/yuan non-deliverable forwards (NDFs) were bid at 6.3700, little changed from 6.3680 at the previous day's close. Their implied yuan appreciation in a year's time fell slightly to 1.51 percent from 1.54 percent.
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