Yuan strengthens to new high against USD

The Chinese currency Renminbi, or yuan, marched to a new high against the U.S. dollar on Tuesday, as the dollar weakened amid concerns over the U.S. government shutdown and the upcoming debt ceiling debate.

The central parity rate of the yuan strengthened 65 basis points to reach 6.1415 per U.S. dollar, the strongest since July, 2005, when the country launched reforms of the exchange rate mechanism, according to the China Foreign Exchange Trading System.

The value of the yuan has risen more than 2 percent since the beginning of the year.

In China's foreign exchange spot market, the yuan is allowed to rise or fall by 1 percent from the central parity rate each trading day.

The central parity rate of the yuan against the U.S. dollar is based on a weighted average of prices before the opening of the market each business day.