SHANGHAI: China’s yuan climbed on Friday to its strongest in a year against the dollar, bucking weakness in Asian peers, as traders cited dollar selling by local exporters after the pair breached a key threshold.
The onshore yuan touched 7.0908 per dollar in early trade, its highest since Nov. 4, 2024, before paring gains following the release of soft economic activity data.
The spot yuan opened at 7.0948 per dollar and was last trading at 7.0955, 10 pips firmer than the previous late session close and 0.18 percent weaker than the midpoint.
Prior to the market opening, the People’s Bank of China set the midpoint rate at 7.0825 per dollar, its strongest since Oct 14,2024 and 139 pips firmer than a Reuters’ estimate.
The spot yuan is allowed to trade 2 percent either side of the fixed midpoint each day.
The offshore yuan traded at 7.096 yuan per dollar, up about 0.01 percent in Asian trade.
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