The Chinese yuan pushed to its record high against the world's reserve currency on Wednesday and is projected to continue demonstrating a strong performance this year, according to Reuters.
The renminbi customarily climbs at the end and the beginning of the year. It advanced 2.9 percent in 2013 against the U.S. dollar. The central bank of China said it intends to reduce its intervention this year, spurring some traders' beliefs that the yuan will perform strongly in 2014.
"The recent midpoints appear to indicate that the PBOC hopes to keep the (onshore) yuan stable just below 6.05/dollar for now," a dealer at a European bank in Shanghai told The Economic Times on Wednesday. "As no major market-moving factors are expected ahead of the Spring Festival, big movements are unlikely until February."
The central bank of the Asian nation set a reference rate that was 0.06 percent weaker than that of Tuesday, which spurred the performance of the yuan against the greenback on Wednesday.
Some analysts said the central bank is aiming to help the yuan stabilize this year, according to The Economic Times.
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