(Yicai Global) Jan. 14 -- The People's Bank of China strengthened the yuan by 309 basis points against the dollar this morning, fixing the central parity rate at 6.8954 as US President Donald Trump and Chinese Vice Premier Liu He prepare to pen the first phase of a China-US trade deal that should ease recent conflicts between the world's largest economies.

The onshore yuan market closed at 6.8942 to a dollar yesterday, appreciating 348 basis points during the day and marking the strongest yuan since July 31 last year.

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: James Boynton