The yuan traded near the highest level yesterday since a dollar peg was scrapped in 2005 on speculation that China will seek a stronger currency to slow inflation.

The currency closed at 6.8657 per dollar in Shanghai at 5:30pm, compared with 6.8653 the day before, according to the China Foreign Exchange Trade System. It touched 6.8612, the highest since the dollar link was abandoned. The yuan has appreciated 2.2 percent against the dollar this quarter, the best among the 10 most-traded currencies in Asia outside Japan.

(Shanghai Daily June 27, 2008))