The Chinese currency, the renminbi or the yuan, on Tuesday appreciated against the U.S. dollar to its highest level in three weeks.
The central parity rate of the yuan strengthened 295 basis points to 6.8575 against the greenback, according to the China Foreign Exchange Trade System.
In China's spot foreign exchange market, the yuan is allowed to rise or fall by 2 percent from the central parity rate each trading day.
The central parity rate of the yuan against the U.S. dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.
The yuan has fallen around 6 percent against the dollar since the start of the year, but has strengthened against other major currencies.
Citing the country's stable economic fundamentals and abundant foreign reserves, analysts agreed that there is no basis for a substantial depreciation of the yuan.
Focus should be on the yuan's value against a basket of currencies instead of just the dollar, Yi Gang, deputy governor of the People's Bank of China, said in late November, while underscoring that the yuan's exchange rate will continue to be kept basically stable at a reasonable and balanced level.
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