Yuan at record high versus dollar after Treasury report.China's yuan has hit a record high against the US dollar after the US Treasury department said

The People's Bank of China (PBOC) fixed the yuan's mid-point at 6.4856 against the US dollar on Monday.

China has been accused by the US and other developed economies of keeping the value of its currency artificially low to boost its exports.

China is the world's biggest exporter.

The US and other major economies have said that China's policy of keeping the value of its currency low gives an unfair advantage to its manufacturers.

There have also been concerns that China's currency policies have also been responsible in part for big trade imbalances with its trading partners.

Currency manipulator

There had been repeated calls in the US to label China a currency manipulator, given Beijing's currency policies and reluctance to let the yuan trade freely.

China however has maintained that while it is willing to allow the yuan to appreciate, its pace has to be gradual.

It said that a sudden rise in the yuan will not only be detrimental to its export sector but will also have a negative impact on the overall economy.

In its report released on Friday, the US Treasury Department said that although China's currency was undervalued, the country was not a currency manipulator.

Analysts say that the report came as no surprise.

"While the US China Business Council (USCBC) has advocated repeatedly that China should allow its exchange rate to better reflect market forces, designating China as a 'manipulator' would achieve nothing," said Erin Ennis of USCBC.