business

Chinese yuan extends gains against USD to 28-month high

BEIJING, Nov. 10 (Xinhua) — The central parity rate of the Chinese currency renminbi, or the yuan, extended gains Tuesday to hit a new high in 28 months against the U.S. dollar.

The central parity rate of the Chinese currency renminbi, or the yuan, strengthened 226 pips to 6.5897 against the U.S. dollar Tuesday, the strongest since June 27, 2018, according to the China Foreign Exchange Trade System.

The yuan’s rally was mainly built on the firm fundamentals of the Chinese economy and the weakened dollar index, said Zhou Maohua, an analyst with China Everbright Bank.

UBS analyst Wang Tao forecasts the Chinese yuan will strengthen to around 6.5 against the U.S. dollar by the end of the year.

In China’s spot foreign exchange market, the yuan is allowed to rise or fall by 2 percent from the central parity rate each trading day.

The central parity rate of the yuan against the U.S. dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.

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