US Treasury Secretary Steven Mnuchin said Tuesday that while China's economy is slowing, it is still developing at a faster rate than most advanced economies. 

Mnuchin pointed out that the Trump administration's approach to improving America's economic relationship with China prioritizes specific issues rather than a bilateral investment agreement.

The treasury secretary also said that Washington has noticed Beijing's moves to boost its currency against the dollar and would keep an eye on its progress. The People's Bank of China has stepped up its efforts to strengthen the RMB since Moody's downgraded its sovereign credit rating two weeks ago.

Momentum for the offshore yuan began building in mid-May and quickened during the Dragon Boat Festival. The offshore yuan rose against the dollar by about 1,500 basis points between May 25th and the end of the month. 

CGTN's Chen Tong reports that a recent adjustment of the onshore yuan's midpoint mechanism by the People's Bank of China also ignited some bullish sentiment among currency traders. 

The PBOC added what it calls a new counter-cyclical mechanism designed to soften the influence of the previous day's closing price on the setting of the yuan's daily midpoint. The onshore yuan market was closed during the Dragon Boat holiday between May 28-30th, but the currency has strengthened against the dollar in recent weeks. 

Experts say that given recent positive signals from the economy, they expect the yuan to remain stable at current levels for at least the coming few months. But some market volatility still remains. External factors such as a sluggish US dollar and the UK general election in early June could all influence future trends for the yuan.