The Chinese yuan strengthened against U.S. dollar in the Asian session on Monday, as China's central bank has injected liquidity into the financial system.

The yuan rose to a 4-day high of 6.9352 against the greenback from Friday's closing value of 6.9501. Further rally may take the yuan to a resistance around the 6.8 area.

The People's Bank of China set today's central parity rate of the yuan at 6.9362 per dollar, compared to Friday's rate of 6.9405. The Chinese central bank sets central parity rate every morning and allows the yuan to fluctuate up to 2 percent from that level.

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