China lifts yuan midpoint to strongest in four-and-a-half months

China lifts yuan midpoint to strongest in four-and-a-half months

FILE PHOTO: Chinese 100 yuan banknotes in a counting machine while a clerk counts them at a branch
Chinese 100 yuan banknotes are seen in a counting machine in Beijing, China, in this Mar 30, 2016 file picture. (File photo: REUTERS/Kim Kyung-Hoon)

SHANGHAI: China's central bank lifted its official yuan midpoint to the highest in more than four-and-a-half months on Thursday (Dec 26), breaching a key threshold, to reflect strong gains in the spot yuan a day earlier.

The People's Bank of China (PBOC) set the midpoint rate at 6.9801 per dollar prior to the market open, 266 pips or 0.38 per cent firmer than the previous fix of 7.0067 and the strongest since Aug 6.

It's also the biggest daily uptick in percentage terms since Nov 6.

Onshore spot yuan strengthened against the dollar in holiday-thinned trading on Wednesday, rising past the key seven-per-dollar level and ending domestic trade at the strongest since early August, supported by rising year-end corporate dollar selling.

Source: Reuters/ga

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