China lifts yuan midpoint to strongest level in over 3 weeks

[SHANGHAI] China's central bank lifted its official yuan midpoint on Friday to the highest level in over three weeks to reflect losses in the greenback overnight in global markets.

The People's Bank of China set the midpoint rate at 7.0354 per dollar prior to the market open, 182 pips, or 0.3 per cent, firmer than the previous fix of 7.0536, and the strongest since March 18.

The dollar dropped broadly after the US Federal Reserve rolled out a US$2.3 trillion effort to bolster local governments and small and mid-sized businesses in its latest move to keep the economy intact as the country battles the coronavirus pandemic.

Traders said Friday's official yuan guidance rate came in much stronger than their forecasts. It was also 56 pips firmer than Reuters' estimate of 7.0410.

REUTERS