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CHINA'S central bank is again revaluing its currency, the yuan - but in contrast to the sudden one-off move that jolted global markets in 2005, the current rise is being engineered over weeks and has been signalled.

The yuan's sharp climb against the US dollar in the past few weeks, which Shanghai traders are calling a "mini revaluation", suggested the central bank was adopting a new approach to the currency market as it battled rising inflation, analysts said.

"We believe the central bank has adjusted its policy and is likely to allow periodic yuan jumps of a few per cent each this year," said the economist Wang Haoyu at First Capital Securities in Shenzhen.

"This will allow the yuan to reach the level that the government sees as appropriate very fast, so it may reduce inflows of speculative money. But the central bank will have the flexibility to conduct more rounds of appreciation later on."

The yuan closed at 7.2934 to the US dollar on Wednesday, near a ...

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