⁍ The People’s Bank of China set the midpoint rate at 6.6781 per dollar.

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⁍ The onshore yuan opened at 6.6699 per dollar and jumped to a high of 6.6602.

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⁍ By 0158 GMT, it traded at 6.6683, 87 pips firmer than the previous late session close.

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– The People’s Bank of China on Wednesday set the midpoint rate for the yuan’s value against the dollar at its strongest level since July, Reuters reports. The yuan hit a high of 6.6602, its highest level against the dollar since July 13, 2018. “The yuan continues to strengthen due to its superior economic backdrop relative to other currency trades and sets it at the top of the macro heap,” Stephen Innes, chief global markets strategist at Axi, said in a note. “The better retail sales data for September continues to resonate and signals that domestic demand is holding up.’ China’s economic recovery accelerated in the third quarter as consumers shook off their coronavirus caution. Official data released this week showed China’s economic recovery accelerated in the third quarter as consumers shook off their coronavirus caution. Several currency traders also noted how far the yuan could rise largely depended on the regulator’s attitude on recent rallies. “Yuan appreciation could have a contractionary effect on the economy, the central bank apparently does not want to see too rapid a rise in the exchange rate,’ said Xie Yaxuan, chief macro analyst at China Merchants Securities. “Although the central bank avoids direct participation in the FX market, it can still affect supply and demand of yuan and dollars through market-based methods.’ Earlier this month, the PBOC cancelled foreign exchange forward reserve requirements, seen widely as a sign that authorities were uncomfortable with the yuan’s fast gains.