China sets yuan midpoint at 28-month high after Joe Biden wins presidency

China's central bank on Monday lifted its official yuan midpoint to the highest in more than 28 months, underpinned by an easing dollar and solid gains in spot prices from last Friday. The People's Bank of China (PBOC) set the midpoint rate at 6.6123 per dollar prior to the market open, 167 pips, or 0.25%, firmer than the previous fix of 6.6290.

China's central bank on Monday lifted its official yuan midpoint to the highest in more than 28 months, underpinned by an easing dollar and solid gains in spot prices from last Friday. The People's Bank of China (PBOC) set the midpoint rate at 6.6123 per dollar prior to the market open, 167 pips, or 0.25%, firmer than the previous fix of 6.6290. It was the strongest guidance rate since June 28, 2018.

The dollar eased, as investors welcomed Joe Biden's election as U.S. president by buying trade-exposed currencies on the expectation of a steadier approach to foreign policy, and as U.S. monetary settings look to remain easy for years.

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