BEIJING, Oct. 30 -- The yuan hit a new post-revaluation high against the US dollar last week in the global markets.

The Chinese currency closed at 7.8896 against the US dollar on Friday, breaking the psychologically important level of 7.8900 for the first time since China appreciated the yuan 2.1 percent and depegged it from the greenback in July 2005.

Traders said the yuan's strength was in line with a weaker U.S. dollar against other major currencies in the global markets.

The U.S. Federal Reserve kept interest rates stable and made no changes to its outlook for a more moderate growth and inflation in a policy meeting last week. It triggered expectations the Fed will put US rates on hold in the near future, dampening the currency's luster.

China will gradually allow the market to play a greater role in setting exchange rates, Wu Xiaoling, vice governor of the People's Bank of China said on Tuesday.

China now allows a daily 0.3 percent trading fluctuation on its yuan.

(Source: Shanghai Daily)