China's yuan closed on Monday at its highest levels against the dollar since it was revalued last week and also moved to the upper end of its trading limit against the euro. Traders and economists are watching every slight movement by the yuan for clues about how flexible Chinese authorities will be.
Monday's moves were further proof, they said, that despite last Thursday's dramatic revaluation and depegging, the yuan remains a quasi-dollar peg. The yuan closed at 8.1097 per dollar, up 0.02 percent from Friday's close of 8.1111. It briefly traded as strong as 8.1089 shortly before the close.
Since the changes on Thursday, the currency has moved between 8.1111 and 8.1089, far less than the new system allows.