China’s central bank on Friday lifted its official yuan midpoint by the most in more than two months, to 6.9371 per dollar, after signs of easing tensions between the world’s two largest economies, Reuters reports.
The official yuan midpoint CNY=PBOC, the strongest since Oct. 24, was 299 pips, or 0.43 percent, firmer than the previous fix of 6.9670.
The move in Friday’s official guidance rate was the biggest one-day strengthening in percentage terms since Aug. 28. And the guidance rate was 31 pips firmer than Reuters’ estimate of 6.9402 per dollar.
U.S. President Donald Trump and Chinese President Xi Jinping both expressed optimism on Thursday about resolving their bitter trade disputes.
Separately, the dollar sagged against its peers, pulling away from a 16-month peak hit earlier this week as returning confidence in financial markets reduced the appeal for safe haven assets.