The yuan rose to its highest level against the U.S. dollar in five years on Tuesday after China's central bank vowed to make the currency regime more flexible.

The central parity of the RMB to the U.S. dollar climbed to 6.7980 on Tuesday, 0.43 percent higher than 6.8275 on Monday, the highest since China unpegged the yuan from the U.S. dollar in July 2005, according to the China Foreign Exchange Trading System.

China's central bank announced over the weekend that it will push forward reform of the Renminbi exchange rate, but ruled out the possibility of a one-off revaluation.

At Monday's opening, the yuan was unchanged against the U.S. dollar from the last trading day, but the spot price rose by nearly 0.45 percent, almost hitting its daily limit of 0.5 percent.