The yuan, which was revalued by 2.1 percent on July 21 to 8.11 per dollar, closed at 8.0857 per dollar, versus 8.0867 on Tuesday. The currency is now 0.3 percent stronger than it was immediately after the policy change.
Bush, who is due to visit China from November 19 as part of a four-nations trip to Asia, urged Beijing on Tuesday to do more to allow the yuan to strengthen and said the trade imbalance between the two countries was "bothersome". He told Asian journalists he would discuss his hopes for more currency flexibility with Chinese President Hu Jintao.
But dealers said the yuan was likely to move in a wafer-thin 100-tick box between 8.0800 and 8.0900 in coming days or even weeks.
"We don't see the yuan moving a lot, even though Bush is coming," said a Shanghai-based dealer at a foreign bank.
"China is now focusing on market reforms to improve the mechanisms that determine the yuan's exchange rate, rather than preparing the currency to appreciate significantly."
But the yuan was likely to climb gradually versus the dollar in the long run, supported by a heavy dollar inflow on to the domestic market due to China's strong trade surpluses and heavy foreign investment, dealers said.
The People's Bank of China said on Wednesday it would keep monetary policy steady this quarter and reaffirmed a commitment to hold the yuan's exchange rate basically stable.
With China enjoying a large balance of payments surplus, the central bank said it would keep a tight check on forex inflows while expanding the channels for capital to leave the country.
On Wednesday the yuan weakened against the euro to close at 9.5091 compared with 9.4641 on Tuesday. It ended softer to close at 6.8852 per 100 yen from 6.8548, the central bank said on its Web site.
One-year onshore yuan forwards were quoted at 7.815 to the dollar on Wednesday, anticipating that the yuan would be 3.4 percent stronger in a year's time.
Five deals were done on Wednesday, though none were for one year in duration. It was one of the most active trading days since the onshore forwards were launched on August 15.