China's yuan basket index hits fresh five-year highs

Dhwani Mehta FXStreet

The value of the Chinese yuan against its major trading partner hit a fresh over five-year highs after the People Bank of China (PBOC) set its official yuan midpoint at the strongest level in a week this Thursday.

China’s trade-weighted yuan basket index to 98.77, the highest since March 15, 2016, up 4.15% so far this year, based on Reuters calculations.

The PBOC set the USD/CNY reference rate at 6.4651 prior to the market open, which was 184 pips or 0.28%, stronger than the previous fix of 6.4835, making it the strongest since July 15.

Meanwhile, USD/CNY was last seen trading modestly flat at 6.4680, having found some support near three-day lows of 6.4653.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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