Showing its might, the currency of the world’s second-biggest economy China climbed to its two years high briefly on Wednesday, since July 2018. It showcased the strength to the Central bank of the country.
During early trades in Shanghai, yuan gained 0.16 per cent against the dollar (6.6664). Notably, the preference rate was fixed at 6.6781 by the People’s Bank of China.
One thing that the bank is preferring is to fix the currency’s reference rate daily. It will bar the move more than 2 per cent in any direction. Over the past three months, the currency of China has surged more than 4.7 per cent. It is the biggest increase for any currency in Asia recently.
The weak dollar is the biggest reason for the yuan to gain strength. During the recovery from the China borne virus, the GDP of the country expanded by 4.9 per cent on year-on-year comparison during the quarter July-September.