The stronger midpoint setting followed a slide in the dollar index overnight, but the spot market hardly twitched.
The yuan has nearly flatlined in minimal volatility in recent weeks as traders say major state-owned banks continue to buy up dollars, capping upward pressure on the traded exchange rate.
The central bank set the midpoint at 6.1342 per dollar in the morning, up 0.06 percent from Friday's close. The spot yuan opened at 6.0924 per dollar, marginally firmer than Friday's 6.0936 close, and stayed within a close range of less than 10 points in the morning session.
The yuan remains within sight of the record high of 6.0802 set in late October, but traders believe the People's Bank of China is acting through the large banks to hold the rate back in the face of an onslaught of hot money inflows looking to cash in on expectations of further appreciation.
The offshore market in Hong Kong is pricing in more appreciation to come, with the offshore yuan (CNH) trading at 6.0777 per dollar, 24 basis points stronger than the onshore version.
The PBOC strategy has maintained market liquidity while holding back the yuan, but it is also pouring extra yuan into the interbank market as a side effect, affecting the PBOC's money management strategy.
In response the bank has signalled it will aggressively sop up extra cash through open market operations, and short-term money rates have risen as a result.