SHANGHAI, Aug. 27 -- THE Chinese yuan may continue to appreciate this week after the central bank increased the costs of borrowing for the fourth time this year to stem rising consumer prices.

The currency settled at 7.5669 against the US dollar on Friday, up from 7.5963 a week earlier. It has appreciated 8.6 percent since the fixed exchange rate of 8.28 to the US dollar was abandoned on July 21, 2005.

The Beijing-based People's Bank of China, the central bank, last Tuesday raised interest rates for the fourth time this year as it tries to rein in the highest inflation in more than a decade.

Inflation jumped in July to 5.6 percent, the highest increase since February 1997.