The value of the RMB, China's currency, against the US dollar hit a new high on Thursday. The central parity rate was set at 7.7977 yuan to one dollar, breaking the 7.80 mark for the first time.

The yuan's appreciation on Thursday followed 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 yuan may equal the Hong Kong dollar's fixed rate for the first time in 13 years. Currently, the Hong Kong dollar  trades at around HK$7.8 against the dollar.

In 2006, the value of the RMB rose 3.28 percent against the dollar, with an accelerating trend from 0.66 percent in the first quarter to 1.15 percent in the fourth.

Earlier in December, China's State Information Center predicted a three to four percent appreciation of the yuan in 2007, while the Bank of America and Deutsche Bank expected a rise of four to six percent and 4.5 percent respectively.

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