The Chinese central bank on Tuesday raised the daily reference rate for the renminbi against the dollar in a sign that Beijing might allow further gentle appreciation of the currency this week. However, the currency fell against the dollar in the spot market, a warning to investors who viewed the renminbi as a one-way bet under the new regime.

The People’s Bank of China raised its reference rate by 0.43 per cent from Monday’s rate. The bank sets the renminbi-dollar reference rate daily, and then allows the currency to trade 0.5 per cent below or above that rate.

The shift means the Chinese currency on Tuesday could conceivably end about 1 per cent higher than its close on Friday, which was roughly the rate it traded at for the past two years.