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15:19, 10-Aug-2017
China's yuan strengthens to 10-month high against USD
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The central parity rate of the yuan strengthened 305 basis points to 6.6770 against the US dollar Thursday, its highest level in more than 10 months.
This came following a rise of 109 basis points Wednesday, according to China Foreign Exchange Trade System.
Analysts partly attributed the yuan's rally to a weaker US dollar.
Judging from the comparative depreciation of the US dollar, the yuan may continue to rise slightly this year, according to China International Capital Corporation.
The yuan is also supported by economic data which pointed to latest restructuring achievements and provided fresh stabilization signs for the Chinese economy, said analysts.
China's economy expanded 6.9 percent in the first half of 2017, with consumption and services, together with new innovation-driven economic sectors, taking up larger roles in the economy.
China's yuan has strengthened to a 10-month high against the USD /Xinhua Photo
China's yuan has strengthened to a 10-month high against the USD /Xinhua Photo
The People's Bank of China said Monday that foreign exchange reserves rose for a sixth month in July to hit 3.1 trillion US dollars, an increase of 23.9 billion US dollars from a month earlier.
It is the first time since June 2014 that China's forex reserves have expanded for six straight months.
Despite a slowdown in expansion, total foreign trade reached 2.32 trillion yuan (346 billion US dollars) in July, the third largest monthly total this year after May and June.
Consumer and factory-gate inflation held steady. The CPI rose 1.4 percent year on year in July, the National Bureau of Statistics (NBS) said Wednesday.
PPI rose 5.5 percent year on year in July, unchanged from the previous two months.
Under the market-based, managed floating exchange rate system, the yuan can rise or fall by 2 percent against the US dollar from the central parity rate each trading day.
The central parity rate is a weighted average of quotes from dealer banks, and follows a formula based on the previous day's closing rate and changes in a basket of selected currencies.
Source(s): Xinhua News Agency