The Chinese yuan strengthened against the U.S. dollar again on Friday. The PBOC set its yuan midpoint rate at 6.4169, 232 basis points higher than the previous fix, and that was the highest in over two years. The yuan rallied at both onshore and offshore markets, with the onshore spot yuan rate trading at 6.4010 per dollar. Analysts say, a weakened U.S. dollar fueled the yuan's recent rally, and expect the yuan will test the 6.2 per dollar level in the first half of this year, while some institutional investors forecast the yuan will breach 6.33 per dollar this year.