(Yicai Global) Feb. 2 -- The Chinese yuan strengthened for a third day in a row against the U.S. dollar to the highest level in more than 25 months as the greenback foundered.

The yuan-dollar central parity rose 160 basis points to 6.2885 today. The rate for onshore and offshore yuan broke through the 6.28 mark at around 9.30 a.m., reaching the highest point since Aug. 11, 2015.

After a sustained downward trend, the overnight dollar index stood at 88.635 at 7.30 a.m. Despite hawkish statements from the U.S. Federal Reserve, the dollar's overall trend will remain on the same track and the market has fully absorbed expectations for three Fed rate hikes, according to analysts.

The yuan's rise relies on short-term performance in the dollar. If the U.S. currency remains weak, the yuan will gain more strongly. A break through the 89-mark would relieve downward pressure on the dollar, slowing the yuan's ascent, analysts noted.​