Renminbi central parity rate set at a new high

The central bank set the central parity rate of renminbi at a new high yesterday, a move that may help ease the trade tension with the US and curb inflation.

The Chinese currency climbed for the seventh day to 6.8796 yuan against the dollar, up 27 basis points from a day earlier. The currency has appreciated 6.18 percent this year and about 20 percent since the nation scrapped its peg to the dollar in 2005.

"In terms of currency, our side expressed an understanding and appreciation of the accelerated pace of appreciation of the renminbi," said US Treasury Secretary Henry Paulson at a news conference during the strategic economic dialogue between US and Chinese officials.