The yuan is expected to appreciate further in the short-term due to China's stabilizing economy and quantitative easing in the United States, experts have said.
The yuan's central parity rate against the U.S. dollar, which is based on a weighted average of prices given by market makers, strengthened for three consecutive trading days to reach 6.29 on Monday, a record high since May 11.
In the spot market, the yuan's rate against the U.S. dollar hit a historical high of 6.21 in early trading on Monday.
The yuan is allowed to rise or fall by 1 percent from the central parity rate each trading day in the spot market.
Chen Daofu, a researcher with the Development Research Center of the State Council, said the yuan's recent appreciation is due to China's stabilizing economy and its prudent monetary policy, as well as the third round of quantitative easing (QE3) announced in September by the U.S. Federal Reserve.
Data released earlier this month by the National Statistics Bureau (NBS) showed that the country's economy is gradually stabilizing.
NBS data released Thursday showed that China's economy expanded by 7.7 percent year on year in the first three quarters, higher than the 7.5-percent annual economic growth target set for 2012.
Total retail sales in September hit 1.82 trillion yuan, up 14.2 percent year on year, with the month-on-month growth rate increasing 1.46 percentage points.
Industrial value-added output grew 9.2 percent in September, up 0.3 percentage points compared with the growth in August. Fixed-asset investment rose 20.5 percent year on year in the first nine months, up 0.1 percentage point from the first half.
Temperature drops in central and eastern China
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