China's yuan hits new record against dollar

The Chinese yuan hit a new record high against US dollar on Wednesday, according to the China Foreign Exchange Trading System. The central parity rate of the yuan advanced to CNY 6.5369 per US dollar, up 71 basis points from Tuesday's 6.5440 to the greenback. The People's Bank of China fixes the central parity rate, an official reference for daily trading, every morning, and allows the currency to fluctuate up to 0.5 percent from the rate. Based on the central parity, yuan strengthened against the dollar. Chinese Premier Wen Jiabao in March stressed that the reform of the yuan exchange rate must be gradual. However, last week, US Treasury Secretary Timothy Geithner told a congressional panel that Washington will continue to urge Beijing to raise the yuan more rapidly. American policymakers often argue that the Chinese currency is significantly undervalued, giving China's exporters an unfair advantage.