SHANGHAI: China’s yuan ended Tuesday’s domestic trading session at a 5-1/2-month high against the dollar, as investors welcomed talks between US President Joe Biden and Chinese leader Xi Jinping.

Both the onshore and offshore yuan jumped, with the onshore spot price hitting a high of 6.3666 per dollar before ending domestic trading session at 6.3770, the strongest such close since June 1, up 0.11% from previous late night close.

Its offshore counterpart also leapt to 6.3616 at one point, the highest since June 1.

Currency traders said the meeting between Biden and Xi offered signs of improvements in bilateral relations and chances of partial tariff removals.

“The virtual summit was only meant to ease tension. It was not intended to achieve normalisation of the bilateral relationship,” said Raymond Yeung, China economist at ANZ.