(Xinhua)
Updated: 2008-02-29 14:23

The Chinese currency continued to set a new high on Friday, breaking the 7.11 mark to a central parity rate of 7.1058 yuan against one US dollar.[Asianewsphoto]

The Chinese currency continued to set a new high on Friday, breaking the 7.11 mark to a central parity rate of 7.1058 yuan against one US dollar.

Observers attribute the rise to a weakened US dollar, which devaluated to 1.5229 to one euro on Thursday, a record low since the euro's introduction in 1999.

The Chinese yuan climbed 151 basis points from Thursday, reaching the 19th new high in the past two months.

The yuan has appreciated by more than 2.58 percent against the dollar this year and more than 13 percent since it was de-pegged from the dollar in July 2005.

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US critics have argued an undervalued yuan makes China-made products unfairly cheaper and brings a massive trade deficit to the United States.

The US Federal Reserve Chairman Ben Bernanke said on Wednesday in testimony to Congress that a devalued yuan could help reduce trade deficits, triggering a new round of dollar selling.

The US currency was further driven down by downbeat economic figures released on Thursday.

Reports show the US gross domestic product in the fourth quarter rose by an annual rate of 0.6 percent, smaller than expected. The number of first-time unemployment claims rose last week by 19,000 to 373,000, the highest level since late January.