Yuan Hits 2016 High Against USD After PBOC’s Zhou Speaks on FX Strategy

The yuan hit a 2016 high on Monday, after the People’s Bank of China (PBOC) set its official midpoint rate sharply stronger against the dollar and the central bank governor talked up the currency.

The PBOC set the yuan at 6.5118 per dollar prior to the market open on Monday, up from 6.5314 on February 5, the final fix before the week-long Lunar New Year holiday.

The central bank sets a daily midpoint, or reference rate, and allows the yuan to trade 2 percent above or below this point, as the country makes the transition to a market-based currency valuation.

At 0.3 percent higher, Monday’s midpoint fix versus the previous fix was the biggest change since Nov. 2. when the PBOC put the midpoint 0.5 percent higher.

CNBC

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