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The yuan soared to its highest level Tuesday morning since the currency's revaluation in July 2005. China's central bank set the yuan's daily mid-point at 6.7980 against the dollar on Tuesday. The mid point rose nearly 300 basis points from Monday's mid point.
Market dealers said they expected it to come around 6.8000, based on the yuan's close on Monday and a slight fall overnight in the US dollar. The yuan closed at its highest level since July 2005 on the first trading day on Monday, up 0.4 percent.
This came after the central bank announced the weekend to proceed further with the reform of the Renminbi exchange rate regime to enhance flexibility. The central bank ruled out a one-off revaluation, saying it will keep the exchange rate at a basically stable level.
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