The currency gained by the most in three weeks after the central bank set a stronger reference rate for a fourth day, reflecting the dollar’s weakness. CLSA Asia-Pacific Markets yesterday said China’s manufacturing expanded for the first time in nine months after declines in export orders moderated.
“The reference rates are indicating some slow appreciation,” said Zhang Li, a foreign-exchange trader at Industrial Bank Co. in Shanghai. “As the worst is probably over for China’s overseas sales, the exchange rate is not as important as before.”
The currency climbed as much as 0.06 percent to 6.8187 per dollar, the highest level since Oct. 9, and traded at 6.8190 as of 10:42 a.m. in Shanghai, according to the China Foreign Exchange Trade System. It has advanced 0.05 percent this year.
China’s central bank fixed the yuan at 6.8201 today, the strongest since September. The currency is allowed to trade by up to 0.5 percent either side of the daily rate.
“The market is still uncertain about the real direction,” said Zhang at Industrial Bank. “Only after the yuan breaks through the important 6.8 level, can we be sure the central bank will resume its gains.”
