The yuan rose 0.9 percent during the week ending Dec. 28 to 7.3041 to the dollar, which is more than any one-week increase since China stopped pegging its currency to the dollar July 21, 2005.

China's chief economist with the National Bureau of Statistics, Yao Jingyuan, told the New York Times (NYSE:NYT) officials were debating their next move.

"It is certain that the yuan will appreciate — the time frame and magnitude of the adjustment is difficult to confirm at the current time. We are busy studying this issue right now," he said.

Other economic officials said the Chinese government saw rising domestic inflation as a positive climate for a stronger yuan.

However, opposing voices in the labor market said they feared faster appreciation would hurt employment and diminish exports as a stronger currency effects profit margins.

The worries were offset as Chinese exports rose 22.8 percent last month compared with 2006 levels.