The value of yuan against US dollar hit a new high today, with the central parity rate at 7.7977 yuan to US$1, breaking the 7.80 mark for the first time.
The yuan's appreciation today followed previous record on the final trading day of 2006 when the central parity rate hit 7.8087.

The market exchange rate of the yuan against the dollar closed yesterday at 7.8081.

The yuan successively breached the marks of 7.87, 7.86, 7.85, 7.84, 7.83, 7.82 and 7.81 against the US dollar during the past three months, showing a trend of accelerated appreciation.

Analysts attributed faster yuan's appreciation to China's economic development, trade surplus growth, the weakness of US dollar and profit-taking.

China's State Information Center has predicted a 3-4 percent appreciation in 2007, while the Bank of America and Deutsche Bank expected the yuan to rise 4-6 percent and 4.5 percent, respectively.

The government launched the reform in July last year to allow the yuan to float within a daily 0.3 percent band from the official central parity rate.

Tang Xu, director general of the research department of China's central bank, said the current floating band of the exchange rate was wide enough although the yuan was under heavy pressure to appreciate.