USD/CNY at 6.1560 as Fixing Set Strongest Since 2010

China’s yuan rose to a six-month high as the central bank raised its fixing by the most in almost four years after the nation reported a record trade surplus.

The People’s Bank of China boosted the currency’s daily reference rate by 0.3 percent to 6.1520 per dollar, the biggest increase since November 2010 and the strongest level in four weeks. Exports exceeded imports by $49.84 billion in August, from the previous record of $47.30 billion in July. That was more than the median estimate for a $40 billion surplus in a Bloomberg survey. Overseas sales increased for a fifth month, while inward shipments unexpectedly fell.

The yuan strengthened 0.11 percent from Sept. 5 to 6.1343 per dollar as of 11:58 a.m. in Shanghai, China Foreign Exchange Trade System prices show. It touched 6.1317 earlier, the strongest level since March 11, and traded at a 0.3 percent premium to the fixing, within the 2 percent limit. The nation’s financial markets were closed yesterday for a holiday.

Bloomberg

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