China fixes yuan midpoint at 5-week high, biggest one-day strengthening since Oct 11

[SHANGHAI] China's central bank set its official yuan midpoint at the strongest level in five weeks on Thursday at 6.6021 per US dollar, reflecting spot yuan performance a day earlier and dollar movements in global markets overnight.

The move in the official guidance rate was the biggest one-day strengthening in percentage terms since Oct 11.

Thursday's official midpoint was 269 pips or 0.41 per cent firmer than the previous fix of 6.6290 per US dollar on Wednesday.

Market participants said the official fix came in line with their forecasts. Thursday's fixing was guided at the firmest level since Oct 18.

The yuan firmed against the US dollar on Wednesday, boosted by tight liquidity in the offshore market that pushed offshore renminbi borrowing costs to the highest in more than five months.

REUTERS