China's tightly-controlled yuan traded at a record high against the U.S. dollar on Tuesday and unprecedented demand has made it stand out as one of the world's most attractive currencies, analysts told CNBC.
Following strong trade data published over the weekend, the People's Bank of China (PBOC) has been aggressively fixing the yuan's daily mid-point at its highest levels since the 2005 currency revaluation.
On Tuesday, the yuan was fixed at 6.1114 to the dollar and rose to a fresh record high of 6.0703. The central bank controls yuan trading by limiting its movement to 1 percent on either side of a daily-fixed mid-point.
(Read more: Yuan now second most used currency in trade finance)
Aside from more positive data out of the economy and signs that reform plans are gaining traction, Oakley told CNBC that another more important driver underlies yuan strength.
"The real issue for the yuan doesn't so much lie in the data actually. It lies in the unprecedented structural demand from sovereigns, corporates and from retail investors around the world, because relative to any other currency, it's out on its own," he added