The daily mid-point of the yuan's exchange rate stood at 8.0388 against U.S. dollar on Wednesday versus Tuesday's close of 8.0473.

The yuan has been strengthening since March 13 and it is expected to set a record high in the near future, said Yu Yi, a Shanghai economist and a special analyst for Xinhua. He added the appreciation was mainly dominated by market demand.

The mid-point of the yuan's exchange rate on Wednesday was 8.0388 against U.S. dollar, 9.6620 against the Euro, 6.8311 against 100 Japanese yen, 1.0361 against the Hong Kong dollar.

Meanwhile, the market has been reacting positively following Chinese Premier Wen Jiabao's remarks at a press conference in Beijing on Tuesday, Yu said.

Wen told the conference that there won't be one-off administrative appreciation or depreciation anymore and China will introduce no more unexpected changes in reforming the exchange rate of its currency.

The mid-point of the yuan's exchange rate against the dollar on Wednesday has been climbing from the mid-point of 8.0503 on March 13, but slightly lower than the high of 8.0380.

China revalued the currency by 2.1 percent to 8.11 yuan per dollar in July last year.

Source: Xinhua