(Yicai Global) Dec. 26 -- The People's Bank of China strengthened the yuan by 266 basis points against the US dollar to 6.9801 this morning, marking the strongest redback since Aug. 6.  

The onshore yuan market closed at 6.9823 yesterday, appreciating 252 basis points during the day. Chinese companies' increasing year-end needs of foreign exchange settlement caused the boost, according to market analysts.

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 the figure.

Editor: Emmi Laine