By Fion Li - Apr 26, 2012 10:12 AM GMT+0800 The yuan strengthened for a third day after Chinaâ€™s central bank set a record reference rate for the currency and Federal Reserve Chairman Ben S. Bernanke said heâ€™s prepared to do more to stimulate U.S. economic growth. The Peopleâ€™s Bank of China raised the fixing 0.15 percent to 6.2829 per dollar, the strongest level since a peg ended in July 2005. The Fed reiterated a pledge yesterday to keep U.S. borrowing costs â€œexceptionally lowâ€ through 2014 and upgraded its economic growth forecast for Chinaâ€™s biggest export market. The fourth round of the U.S.-China strategic and economic dialogue will start in Beijing in a weekâ€™s time and be attended by U.S. Treasury Secretary Timothy F. Geithner, Secretary of State Hillary Clinton and Chinese Vice Premier Wang Qishan. â€œA better U.S. outlook will boost prospects for Chinese exports and hence support the yuan,â€ said Banny Lam, a Hong Kong-based economist at CCB International Securities Ltd., a unit of Chinaâ€™s second-largest bank. â€œChina typically strengthens the reference rate before high-level meetings with the U.S. to promote a positive atmosphere for talks.â€ The yuan rose 0.07 percent to 6.2994 per dollar as of 10:02 a.m. in Shanghai, contributing to a three-day advance of 0.15 percent, according to the China Foreign Exchange Trade System. The currency is allowed to trade up to 1 percent on either side of the central bankâ€™s daily fixing. In Hong Kongâ€™s offshore market, the yuan gained 0.05 percent to 6.3025. Twelve-month non-deliverable forwards strengthened 0.04 percent to 6.3478, a 0.8 percent discount to the onshore spot rate, according to data compiled by Bloomberg. One-month implied volatility for the currency, a measure of exchange-rate swings used to price options, was little changed at 2.10 percent. Chinaâ€™s economy may grow about 8.7 percent this year, the official Xinhua News Agency reported yesterday, citing a report by the Chinese Academy of Social Sciences. The trade surplus may be $126 billion, Xinhua said.