{jcomments on}Yuan forwards strengthened for the first time in three days on speculation China will tolerate gains in its currency to curb rising prices. The yuan\'s appreciation against the dollar is \"inevitable,\" China Forex Magazine reported, citing Ma Yan, an official at the National Bureau of Statistics. Annual inflation was 6.4 per cent in June, the fastest pace in three years, according to official data released July 9. \"Investors are buying in after the fall yesterday as they still expect China will allow more currency appreciation to lower imported inflation,\" said Banny Lam, a Hong Kong-based economist at CCB International Securities. Twelve-month non-deliverable forwards advanced 0.14 per cent to 6.4032 per dollar, a 0.9 per cent premium to the onshore spot rate, according to data compiled by Bloomberg. The contracts dropped 0.22 per cent on Monday. Article continues below The yuan rose 0.08 per cent to 6.4634 per dollar, according to the China Foreign Exchange Trade System. The currency touched 6.4563 on July 14, the strongest level since China unified official and market exchange rates at the end of 1993. In Hong Kong\'s offshore market, the yuan gained 0.06 per cent to 6.4635. The People\'s Bank of China set the currency\'s reference rate 0.01 per cent weaker at 6.4684 per dollar yesterday. The yuan isn\'t allowed to trade more than 0.5 per cent on either side of that rate. China should focus on the opening up of the securities market and individual capital account items as it pushes forward with yuan convertibility, Sun Lujun, head of the capital-account management department at the State Administration of Foreign Exchange, wrote in a commentary published in China Finance magazine.