The yuan, which was revalued by 2.1 percent to 8.11 to the dollar on July 21, closed at 8.0916 per dollar compared with Friday's 8.0885. It has now appreciated a further 0.23 percent since the groundbreaking policy moved in July.
On world markets, the dollar shuffled near a two-year high against the Japanese yen on Monday, on prospects that its interest rate advantage would widen even further.
Thus, the yuan firmed against the euro to close at 9.6626, compared with 9.7401 on Friday. It also rose 0.3 percent to end at 6.9943 per 100 yen, from 7.0176, the central bank said on its Web site (www.pbc.gov.cn).
"The dip is normal today given the yuan's strength in the past two trading sessions," said a dealer with a major foreign bank. "Longer term, it could climb further given the strong economy."
One-year onshore yuan forwards were quoted at 7.8440 to the dollar on Monday, effectively anticipating that the yuan would be 3.1 percent firmer in a year's time.
Four onshore forwards deals between 7- and 32-days were completed on Monday.
An influential economist and adviser to China's central bank said on Monday he saw further changes in policy on the yuan, and that further appreciation was unavoidable in the long term.