The yuan, which is not freely convertible on the capital account and whose value is determined mainly by trade flows, moved narrowly with an intraday low of 8.2773. Turnover, a thin US$390 million on Tuesday, was not immediately available.

"The yuan will continue to hover around current firm levels in the short term," said a domestic bank dealer.

Dealers said the yuan would stay near the strong end of a band between 8.2760 to 8.2800 enforced by the central People's Bank of China, buoyed by an ample dollar supply on the market due to China's rosy trade surplus over the past few years.

Newly appointed central bank governor, Zhou Xiaochuan, said early in March the yuan's exchange rate was "largely appropriate" and there was no hurry to change it.

Yesterday, the yuan firmed against the Japanese currency to end at 6.9671 versus 100 yen from 6.9969, and strengthened to 9.0197 against the euro from 9.0213.

(China Daily April 3, 2003)