The value of the RMB against the U.S. dollar hit a new high Thursday, with a central parity rate of 7.7977 yuan to one dollar, breaking the 7.80 mark for the first time.

The yuan's appreciation on Thursday followed a previous record on the final trading day of 2006 when the central parity rate hit 7.8087.

The market exchange rate of the RMB against the dollar closed Wednesday at 7.8081.

The RMB has successively breached 7.87, 7.86, 7.85, 7.84, 7.83, 7.82 and 7.81 against the U.S. dollar during the past three months.

Analysts attributed the yuan's appreciation to China's economic development, trade surplus, the weakness of the U.S. dollar and profit-taking.

China's trade surplus soared 74 percent to a record 177.47 billion U.S. dollars last year, the General Administration of Customs said on Wednesday.

Customs experts predicted a decline in export growth and higher imports this year, which will lead to a reduction in the trade surplus.

Tang Xu, director general of the research department of China's central bank, said the current floating band of the exchange rate was wide enough although the RMB was under heavy pressure to appreciate.

"The RMB exchange rate demonstrated its flexibility by breaking the 7.8 mark only four months after breaking the 7.9 mark," said Zhao Xijun, deputy dean of the School of Finance at Renmin University.

It shows RMB exchange rate fluctuations reflect market demand, he said.

China's State Information Center has predicted a 3-4 percent appreciation in 2007, while the Bank of America and Deutsche Bank expected the RMB to rise 4-6 percent and 4.5 percent, respectively.

The government launched the reform in July last year to allow the yuan to float within a daily 0.3 percent band from the official central parity rate.

Source: Xinhua