Chinese Yuan Edges Higher Against U.S. Dollar

(MENAFN) China's yuan edged higher against the U.S. dollar Thursday, with the China Foreign Exchange Trade System setting the currency's central parity rate at 6.9228 — a gain of 93 pips from the previous session.

The firmer fix signals modest but deliberate strengthening in the official reference rate, which forms the daily anchor for the world's second-largest economy's tightly managed currency.

Under China's foreign exchange framework, the yuan is permitted to fluctuate no more than 2 percent above or below the central parity rate within any single trading session in the spot market — a mechanism designed to allow market movement while preventing sharp, destabilizing swings.

The daily reference rate itself is calculated each business day before the interbank market opens, derived from a weighted average of quotes submitted by designated market makers — a process intended to reflect prevailing market conditions while keeping Beijing's hand firmly on the currency's direction.

Thursday's adjustment, though incremental, comes as currency markets remain sensitive to shifts in U.S.-China trade dynamics and broader dollar momentum.

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