China lifts yuan midpoint the most in 5 months to strongest since May 2019

China's central bank on Wednesday lifted its official yuan midpoint the most in five months to the strongest level since May 2019, following a sharp rally in the spot market a day earlier. The People's Bank of China (PBOC) set the midpoint rate at 6.7825 per dollar prior to the market open, 397 pips or 0.59% firmer than the previous fix of 6.8222.

China's central bank on Wednesday lifted its official yuan midpoint the most in five months to the strongest level since May 2019, following a sharp rally in the spot market a day earlier. The People's Bank of China (PBOC) set the midpoint rate at 6.7825 per dollar prior to the market open, 397 pips or 0.59% firmer than the previous fix of 6.8222. It was the strongest guidance rate since May 9, 2019.

The fixing also marked the biggest one-day gain in percentage terms since April 8, 2020. China's yuan rose to a 16-month high on Tuesday, as upbeat industrial output and retail sales data suggested a broader recovery from the coronavirus crisis was underway.