Chinese Yuan Strengthens To 16-month High Against U.S. Dollar

The Chinese yuan moved up against the U.S. dollar in Asian deals on Wednesday, as the People’s Bank of China fixed the currency’s daily reference rate at a higher level and the dollar fell before the Fed decision.

The Fed is widely expected to leave interest rates unchanged, but investors pay close attention to any tweaks to the accompanying statement.

The yuan rose to 6.7682 against the greenback, its highest level since May 2019. The next possible resistance for the yuan is seen around the 6.69 level.

The People’s Bank of China set today’s central parity rate of the yuan at 6.7825 per dollar, compared to Tuesday’s rate of 6.8222. The Chinese central bank sets central parity rate every morning and allows the yuan to fluctuate up to 2 percent from that level.

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