Yuan Strengthens Against Dollar as China Sets Central Parity Rate at 6.7787

The Chinese yuan strengthened against the United States dollar on Friday after China’s central bank set the currency’s central parity rate at 6.7787 yuan per dollar.

The latest rate represents a 20-pip gain from the previous fixing, indicating a modest appreciation of the Chinese currency against the dollar.

The rate was announced by the China Foreign Exchange Trade System (CFETS), which publishes the daily central parity rate used as a reference for trading in China’s onshore foreign exchange market.

Under China’s exchange-rate system, the yuan is allowed to move within a 2 per cent band above or below its daily central parity rate during each trading session.

The central parity rate is calculated using a weighted average of prices quoted by designated market makers before the opening of the interbank foreign exchange market each business day.

Friday’s adjustment therefore reflected a slight strengthening of the yuan against the dollar at the start of trading.

The latest movement comes amid continued attention on the yuan’s performance against major global currencies and developments in China’s foreign exchange market.