SHANGHAI: The yuan finished the domestic session at a 4-1/2-month high against the dollar on Friday and looked set for its best month in nine, as China's economy and financial markets showed further signs of recovery. The onshore yuan ended its domestic trading session at 6.9794 per dollar, its strongest closing level since March 11. The offshore yuan stood at 6.9838 per dollar around 0841 GMT, up 0.25% on the day.
If the onshore yuan retains its entire gain of 1.23% to the dollar at the late night close, it will book its best monthly rise since last October. The yuan, however, fell against other currencies, which also gained on the greenback's woes.
The Thomson Reuters/HKEX Global CNH index, which tracks the offshore yuan against a basket of currencies, traded at 91.06, its lowest level since last October. The People's Bank of China set the midpoint rate at 6.9848 prior to market open, softer than Reuters' estimate of 6.9781. The Chinese currency has been underpinned by weakness in the dollar, having its worst month in a decade on economic woes in the United States.