The yuan ended up sharply against the dollar on Monday after the Chinese central bank set a higher reference rate for the Chinese currency. Experts say the faster appreciation of the yuan has had some impact on firms and investors.



Before the opening on Monday, the central bank fixed the yuan's daily mid-point at 7.5252, the highest level since the currency's July 2005 revaluation, also the yuan's new high for the 58th time since the start of 2007. The rate is up strongly from Friday's reference rate by 159 basis points.



The yuan ended at 7.5214 on Monday, the highest closing level since the 2005 revaluation.



Wang Songqi, Vice Dean of Financial Institute of China Academy of Social Sciences says "The central bank raised the reference rate by 159 basis points, or 1.6 percent. It is quite a large hike. It suggests the appreciation of yuan against the US dollar has accelerated. This trend will be more and more obvious."



Driving dollar sales in the Chinese foreign exchange market on Monday were expectations that Chinese data due on Tuesday would show a high trade surplus and inflationary pressure.



Experts point out that as the yuan continues rising in the last two years, many Chinese firms have learned how to deal with the change. But if the appreciation accelerates, some firms will still feel the pressure.



Experts also warn individual investors that they should consider the yuan's appreciation when purchasing QDII financial products. The faster appreciation of the yuan will reduce the gains of these products.
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