The yuan ended at a record high against the dollar on Wednesday as the People's Bank of China boosted the mid-point to its biggest one-day percentage rise since mid-November due to a weak dollar index in the global market. Spot yuan ended at a record high and was up sharply at 6.4181 per dollar from 6.4306 at the close on Tuesday. It has now appreciated 6.36 percent since it was depegged from the dollar in June 2010 and 2.65 percent so far this year.
Before trade began, the PBOC fixed the yuan's mid-point to the dollar at an all-time high of 6.4167, up 0.26 percent, the highest single-day percentage rise since November 11. It was at 6.4335 on Tuesday. But dealers said the government had to worry about the impact of a strong yuan on its exports after the US Federal Reserve said it would keep interest rates near zero for two years, which might foreshadow another recession. Offshore benchmark one-year dollar/yuan non-deliverable forwards (NDFs) were bid at 6.3570 late on Wednesday, down from 6.3980 at Tuesday's close. Their implied yuan appreciation in a year's time rose to 0.94 percent from 0.29 percent.