UPDATED: 10:16, December 27, 2008
According to China Foreign Exchange Trade System, the middle rate of the US dollar against the Chinese yuan hit 7.3261 on December 25, 54 base points lower than the previous trading day, and the yuan has kept on appreciating for four consecutive trading days.
By December 25, the RMB had appreciated by 10.7% since the beginning of foreign exchange reform in this country, and by 6.59% in the whole year of 2007. Last week alone, its middle rate rose by 0.72%.
Before the People's Bank of China, the country's central bank, announced the 6th interest rate hike last Thursday, it was expected that the middle rate of the US dollar against the yuan would reach 7.35 by the end of 2007. However, that estimation obvious needs to be corrected at present. With the existence of interest rate difference between China and US, the yuan might appreciate even faster in 2008.
Meanwhile, the People's Bank of China might loose the floating band of the exchange rate of RMB, making it more flexible.
Source: China Daily
P.S.> The Chinese currency(RMB)'s exchange rate reaches a new record high at 1US$=7.2725RMB, according to China Foreign Exchange Trade System, on Jan 03, 2008.