The expectations for the yuan's appreciation in the spot market were sparked by speculative activity linked to the U.S. presidential election and the upcoming congress of the Communist Party of China (CPC).
The expectations also came after the U.S. central bank's third round of bond-buying, known as quantitative easing (QE3), in September.
The spot price of the yuan has risen by about 2.4 percent since July 25 this year.
The recent strong performance of the yuan against the U.S. dollar is a consequence of market demand and the yuan's price is close to equilibrium, said He Jianxiong, head of the international department of the People's Bank of China (PBOC), the central bank.
He made the remarks on Monday at a meeting of finance ministers and central bank governors from the Group of Twenty (G20) in Mexico City.
The yuan's exchange rate will see fewer sharp changes in the future, said Zong Liang, deputy head of the international finance research institute under the Bank of China.
The U.S. presidential election will not have a significant impact on the yuan's exchange rate in the foreign exchange market, He said.
U.S. President Barack Obama has beaten his Republican challenger Mitt Romney to win a second term at the White House, TV networks projected on Wednesday.
Landmark building should respect the public's feeling
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