The Chinese yuan appreciated against the euro and British pound in the overnight, falling slightly against the US dollar to 7.5680, as credit news helped to buoy the underlying currency.

Surprising the market, the Chinese yuan gained to a record high since the revaluation to 7.5576 against the US dollar in the overnight.

The Chinese yuan continued to power ahead on the first session of the week against both the US dollar and euro.

In response to the rapid pace of growth in the world’s fastest growing economy, the People’s Bank of China raised interest rates by 27 basis points.

Economic data was bullish for the Chinese economy as it becomes evidently clear that policy makers will have to do far more in curbing the possibility of an overheating economy.

Ahead of the full schedule of Chinese economic data set for today, traders continued to take the Yuan higher towards the post revaluation record in the overnight session.

The Chinese yuan gained for another session against the US dollar, falling against the pound and euro, as speculation loomed over the possibility of a flexible currency regime in the near future.

The Chinese yuan advanced against the euro and US dollar, while remaining weaker against the yen and British pound in the overnight trade.

The Chinese yuan had its strongest week since the end of the dollar link two years ago as economic data helped to boost speculation of potential near term flexibility in the currency.