The yuan has now risen a new high against US dollar, as China's central Bank tries to stave off torrents of hot money inflows that are creating inflationary bubbles in the world's second largest economy.
The currency has touched 6.4120 to the US dollar.
Analysts say that the central bank will allow the yuan to rise more rapidly in the coming weeks, given that the U.S. Federal Reserve has declared it will keep its near zero interest rate.
A considerable proportion of U.S. credit has been slipping to China, attracted by China's solid growth and higher interest rates.
China's central bank has amassed a total of more than $3.2 trillion in foreign currency reserves as of June.
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