Chinese currency the yuan surged on Monday after the central bank chief reassured investors there is no basis for persistent depreciation.

The Yuan advanced 1.2 percent from Februery 5, the previous trading day before the week-long Spring Festival holiday.

The rise dispelled market concerns and came after comments from Zhou Xiaochuan, governor of the People's Bank of China, in an interview with magazine "Caixin."

Zhou said that there was no basis for the continued depreciation of the Yuan and that "China would not let market sentiment be dominated by speculative forces."

The central parity rate of the Yuan strengthened by nearly 200 basis points against the U.S. dollar on Monday.

Analysts expect the yuan to remain stable.

(From CRIENGLISH.com)