The International Finance News reports today the exchange price of RMB closed at 8.0862 yuan against one US dollar on Oct. 27, a record high since China's launch of its currency reform in July, after climbing up for the third consecutive trading day. The value of the yuan against the US dollar has been up by 0.0293 percent, or 238 base points, since the reform.

The Chinese currency went up from Tuesday to Thursday this week, following a closing price of 8.0916 yuan against one US dollar on Monday.

It was buoyed by the remarks of a central bank official.

The media report on Oct. 25 that Vice Governor of China's central bank Wu Xiaoling viewed the yuan appreciation as a "megatrend" boosted the market expectation. The RMB was traded at 8.0867 yuan against the US dollar on Oct. 26, only 3 points away from the peak of 8.0864 on Oct. 10.

The press office of the central bank made a prompt response by giving a clarification about Wu's remarks on the evening of Oct. 26. However, the dollar was still weak worldwide and yuan continued its upward movement on Oct. 27.

There is a question on whether the market expectation for stronger dollar for a mid- and long-run period will disturb the current sign of yuan's slow appreciation. The new US Fed chief Mr. Bernanke's policy and the continuation of Greenspan's interest rate hike process will not be known until the next Fed meeting. Given this, some market analysts think the RMB's upward movement may turn round in case that both Fed's interest rate rise policy and the trend of strong dollar sustains.

By People's Daily Online