The Chinese yuan is on the charge in Asia, hitting the strongest level against the greenback since August 2015.
Having seen the US dollar fall heavily against all major currencies, except the Japanese yen, on Monday, the People’s Bank of China (PBOC) set the midpoint for the USD/CNY on Tuesday at 6.2816, its lowest level since August 11, 2015.
That was the day the PBOC adopted a more market-orientated mechanism for setting the yuan’s trading level, kicking off a period where the yuan weakened noticeably against the greenback.
However, after rising above 6.95 in late 2016, the USD/CNY has now largely unwound that move, falling over 10% over the past 15 months to hit 6.2580 earlier today.
The USD/CNY currently trades at 6.2628.
Along with a weaker greenback, today’s move follows perceived progress in trade negotiations between the two nations on Monday.
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