China’s yuan extended gains against the U.S. dollar on Friday, hitting its strongest level in more than three months. The People’s Bank of China set the midpoint rate at 6.8698 per dollar prior to the market open, weaker than the previous fix of 6.8695. The spot market opened at 6.8605 per dollar and rose to a high of 6.8493 per dollar, its firmest since Feb. 16.
The yuan was trading at 6.8530 as of 0145 GMT, 175 pips firmer than the previous late session close and 0.24 percent stronger than the midpoint.
On Thursday, the yuan leapt to a near two-month high against the dollar, supported by major state-owned banks in what some traders said was a show of strength by China a day after Moody’s downgraded the country’s credit rating.
The offshore yuan was trading 0.20 percent firmer than the onshore spot at 6.8392 per dollar.