(Yicai Global) Nov. 6 -- The People's Bank of China set the yuan at its strongest point against the US dollar today after an overnight strong upswing of the currency following a nearly 1 percent drop in the US Dollar Index.
The central bank set the yuan central parity rate at 6.6290, its most robust level since July 11, 2018, raising the redback’s value by 605 bips from yesterday.
Yesterday’s near 1 percent drop in the dollar index is the result of capital fleeing from safe havens as the outcome of the US presidential election becomes less murky, while the US Federal Reserve reemphasized the need to hold its benchmark interest rate unchanged at the record-low level of near zero.
After China’s regular onshore market was closed yesterday, the yuan started its upward swing in value, the onshore yuan was traded as strong as 6.6035 in nightly after hour trade , while the offshore yuan touched 6.5954 against the greenback intraday, both are the strongest point for the redback in 28 months,
A higher value in the dollar-yuan pair corresponds to a weaker yuan against the greenback.
The China Foreign Exchange Trade System, the interbank trading and foreign exchange division under the central bank, sets the benchmark on the morning of each business day. Spot rates may deviate 2 percent above or below its figure.
Editor: Ben Armour