HONG KONG: China’s yuan edged up and touched a one-and-a-half-month high against the US dollar on Thursday, supported by dollar weakness after the Federal Reserve held interest rates steady overnight, while the Chinese central bank set the midpoint rate at its strongest level in more than three years.
The US currency fell across the board after the Fed left the interest rate unchanged and offered no forward guidance.
The spot yuan touched 6.7600 per dollar in morning trade, its strongest level since June 17. It was trading at 6.7607 as of 0308 GMT, after moving in a narrow range of 6.7600 to 6.7623.
Prior to the market opening, the People’s Bank of China set the midpoint rate at 6.7892 per dollar, its strongest since February 10, 2023, and 362 pips weaker than a Reuters’ estimate. The spot yuan is allowed to trade 2 percent either side of the fixed midpoint each day.
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