Renminbi forwards hit a record high on Monday after China’s central bank signalled it would tolerate further appreciation against the dollar and strong manufacturing data spurred hopes of a recovery in the world’s second-largest economy.

The People’s Bank of China fixed the midpoint for trading in the renminbi at a record high of 6.1475 to the dollar, compared with Friday’s fix of 6.1557.

The move, which followed a two-day holiday, reflected the dollar’s weakening after the Federal Reserve’s decision to delay tapering of its stimulus programme. But it also underlined Chinese authorities’ commitment to reforms that will drive steady appreciation in the renminbi – despite the competitive challenge posed by recent weakness in the yen and the currencies of other Asian trade rivals.