SHANGHAI (Reuters) - China’s yuan soared on Tuesday to its highest level against the dollar since its July 2005 revaluation after the central bank signaled it would allow the yuan to continue its rise on Tuesday.
The People’s Bank of China set the yuan’s daily mid-point at 6.7980 against the dollar on Tuesday, the highest level since the yuan’s revaluation in July 2005, signaling the central bank could allow the yuan to rise again for the day.
Spot yuan opened at 6.7968 against the dollar, but then rose to as high as 6.7900 in early trade, up 0.11 percent from the close on Monday, when it jumped 0.42 percent.
The yuan may rise or fall 0.5 percent from its mid-point each day, but it has moved only a small fraction of its band in most trading sessions since it was revalued by 2.1 percent to 8.11 per dollar on July 21, 2005.
Reporting by Lu Jianxin and Jason Subler