China's yuan rebounds as PBOC lifts midpoint, dollar falls after Democrats take Congress

China’s yuan strengthened on Thursday after the People’s Bank of China set a firmer daily reference rate, while a weaker US dollar added support. Business Recorder reported that the onshore currency was at 6.6698 per dollar, up 0.09% at 0318 GMT, within a session range of 6.6680 to 6.6727.

The central bank fixed its midpoint at 6.7156, which was 373 pips weaker than the Reuters estimate; the currency can move 2% on either side of that level in a day. Earlier this week, China’s higher foreign-exchange reserve requirement had restrained the yuan’s advance. The yuan has lost 0.2% against the dollar this month but gained 4.9% this year, while offshore trading put it at 6.6675, up about 0.11%; the dollar index slipped 0.207% to 101.26 after Democrats won control of Congress in US midterm elections.