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Renminbi hits record high on central bank fixing

China’s currency strengthened to a new record high of 6.2460 per dollar around 8:30 GMT Tuesday, slightly below its closing price of 6.2707 in Monday and the lowest since China unpegged yuan from the US currency in 2005, The Wall Street Journal reported. This came after the People’s Bank of China set its daily dollar-yuan fixing rate to 6.3106, following sharply lower rate guidance in the previous three sessions. The currency was also boosted by strength in the euro, which rose to 1.3001 per dollar from 1.2950 on Monday after US retail sales showed an unexpected increase of 1.1% in September. The yuan has risen 0.5% against the dollar since the start of 2012. “The yuan will likely consolidate between 6.2600 and 6.2900 in the near term,” predicted one Shanghai-based trader with a local bank.

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