China lifts yuan midpoint for 6th session to highest since June 2019

China's central bank on Tuesday set its official yuan midpoint higher for the sixth trading day in a row to the highest level in more than 14 months, reflecting gains in the spot rate a day earlier.

China's central bank on Tuesday set its official yuan midpoint higher for the sixth trading day in a row to the highest level in more than 14 months, reflecting gains in the spot rate a day earlier. The People's Bank of China (PBOC) set the midpoint rate at 6.8498 per dollar prior to the market open, 107 pips or 0.16% firmer than the previous fix of 6.8605. It was the strongest guidance rate since June 21, 2019.

The onshore spot yuan advanced further on Monday and booked its best month since January 2019, thanks to solid services sector growth and persistent softness in the U.S. dollar as the Federal Reserve signals it is prepared to hold rates lower for longer.