Chinese yuan strengthens to 6.9042 against US dollar Monday

An employee counts yuan banknotes at a bank in Huaibei, Anhui province, June 22, 2010. [Photo/Agencies]

BEIJING - The central parity rate of the Chinese currency renminbi, or the yuan, strengthened 126 basis points to 6.9042 against the US dollar Monday, according to the China Foreign Exchange Trading System.

In China's spot foreign exchange market, the yuan is allowed to rise or fall by 2 percent from the central parity rate each trading day.

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