China's yuan hits highest level since March on central bank guidance

SHANGHAI: China's yuan rose to a seven-month high against the dollar on Tuesday, buoyed by a stronger central bank midpoint.

The Chinese currency traded in a narrow range after hitting 6.1230 per dollar, the spot rate's highest level since early March.

The currency has been rallying slowly but steadily since late September on the back of strong trade data.

The People's Bank of China (PBOC) set its midpoint rate at 6.1408 per dollar prior to market open, up 0.06 percent from the previous fix. The spot rate is currently allowed to trade 2 percent above or below the midpoint.

The spot market opened at 6.1259 per dollar, and was changing hands at 6.1239 at midday, 0.03 percent firmer than the previous close.