The daily mid-point exchange rate of the renminbi (RMB) stood at 8.0388 against the US dollar on Wednesday versus Tuesday's close of 8.0473.

The RMB has been strengthening since March 13 and it is expected to set a record high in the near future, said Yu Yi, a Shanghai economist and a special analyst for Xinhua. He added that the appreciation was due mainly to market demand.

Against other currencies, the RMB stood at 9.6620 against the Euro, 6.8311 against 100 Japanese yen, and 1.0361 against the Hong Kong dollar.

Meanwhile, the market has been reacting positively following Chinese Premier Wen Jiabao's remarks at a press conference in Beijing on Tuesday, Yu said.

Wen said that there won't be any further one-off administrative appreciations or depreciations, and China will not introduce any more unexpected changes in the reform process.

China removed its currency's peg to the US dollar last July, and revalued its currency by 2.1 percent to 8.11 yuan to the dollar.

(Xinhua News Agency March 16, 2006)