China's yuan rose to its strongest level in nearly 16 months on Friday on bets that Beijing will unveil fresh economic stimulus following a jumbo U.S. rate cut, though gains were capped by dollar buying from Chinese state banks.
The onshore yuan strengthened to as much as 7.0420 per dollar, the firmest level since May 24, 2023, on track for a six-session rising streak.
The Fed cut rates by a larger than usual 50-basis-points on Wednesday.
On Friday, China's major state-owned banks were seen buying dollars in the onshore market to prevent the yuan from appreciating too fast.
Prior to the market opening, the People's Bank of China set the midpoint rate at 7.0644 per dollar, its strongest in nearly 16 months.
Persons:
recouping, Zhiwei Zhang, Yang Fan
Organizations:
Citic Securities, People's Bank of
Locations:
Beijing, China, U.S, People's Bank of China