China's yuan trading at 6.1888 against US dollar

China's yuan trading at 6.1888 against US dollarThe Chinese national currency, Yuan has strengthened against the US dollar after the the central bank pegged the currency at a stronger position.

The dollar was trading at 6.1888 Yuan in the morning below Friday's close of 6.2250. The Chinese Yuan was trading in the range of CNY6.1882 to CNY6.2231. The People's Bank of China has pegged the national currency at 6.1452 compared to 6.1475 recorded on Friday. The yuan lost 1.2% of its value against the dollar in the previous week after the currency was allowed more flexibility in the foreign exchange market.

The yuan will be able to trade as much as 2 percent on either side of a daily central bank reference rate, compared with the current 1 percent at present. People's Bank of China had said that the limit has been increased to 2 per cent. The limit was earlier increased in April 2012 from 0.5 percent and was 0.3 percent in May 2007.

Experts have said that the move will encourage greater international use of the currency. The Chinese government is facing pressure from its trading partners including the US, for giving more independence to the market forces.