Chinese yuan continued to its new year rally against the US dollar in onshore trading on Friday. The yuan closed at 6.4040 against the US dollar. That's 140 basis points higher than the previous night session fix. The currency has even breached the 6.4 per dollar level during intraday trading. The yuan has risen 1.6 percent on the dollar so far this year. Its strengthen is reflective of broad weakness in the US dollar as well as upbeat Chinese economic data released recently.