China's yuan hits 4-year high versus dollar after Fed decision

China’s yuan climbed to its strongest level in four years against the US dollar on Thursday, after the Federal Reserve left interest rates unchanged. Business Recorder reported that the People’s Bank of China set its daily midpoint at 6.7147 per dollar, the highest reference rate since February 2, 2023, while continuing to guide the currency’s advance.

The midpoint was 551 pips weaker than the Reuters estimate of 6.6596, the widest such gap since September 15. Onshore trading reached 6.6620 per dollar before the yuan eased to 6.6621, while the offshore rate stood at 6.6601, up about 0.03% in Asian trade. The yuan CFETS basket index rose to 103.75, its highest since July 15, 2022; the currency has gained about 5.9% this year and around 5% against the dollar.