China's Yuan Strengthens to 6.8889 against US Dollar

The Chinese currency, the renminbi or the yuan, strengthened for the second consecutive trading day on the back of positive Chinese economic data and the retreat of the greenback after sinking to its weakest point since June 2008 on Friday.

    The central parity rate of the renminbi strengthened 153 basis points to 6.8889 against the US dollar on Tuesday, according to the China Foreign Exchange Trade System.

    China's combined industrial profits rose 9.8% year on year in October, up from 7.7% in September, adding to the recent string of upbeat economic data, (Xinhua) news agency reported.

    The acceleration was attributed to growth of sales revenue, rising producer prices and the strong profit growth in chemical, coal and general equipment sectors, the National Bureau of Statistics (NBS) said on Sunday.

    The dollar on Monday gave up gains and slipped against several major currencies following a sharp rally in recent weeks. In China's spot foreign exchange market, the yuan is allowed to rise or fall by 2% from the central parity rate each trading day. 

    The central parity rate of the yuan against the dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day