RMB midpoint of yuan exchange rate sets 10-month high

China's central bank on Monday holds the midpoint of the yuan's exchange rate against the US dollar steady at 6.8260, the highest in ten months.

It is at the same level of Friday, when the midpoint climbed for a fifth consecutive trading day. Analysts attribute the appreciation to the weak dollar. But they also say a weak dollar doesn't necessarily mean the yuan's value will start to rise, nor will it not affect the yuan's stability in the short term. Chinese Commerce Minister, Chen Deming, has said revaluing the yuan cannot solve the trade imbalance with the US. Instead, he cites market supply and demand. But the recent strong dollar has seen the yuan's exchange rate against other major currencies appreciate passively. And the market is expecting a stronger dollar this week.

China's central bank on Monday holds the midpoint of the yuan's  exchange rate against the US dollar steady at 6.8260, the highest  in ten months.