SHANGHAI, May 31 (Reuters) - China’s onshore yuan surged against the U.S. dollar on Wednesday to its strongest level in more than four months.
The strength in the Chinese yuan came after the People’s Bank of China set a firmer midpoint rate at 6.8633 per dollar on Wednesday, compared with the previous fixing at 6.8698.
China is considering introducing a “counter-cyclical factor” into the way it calculates the yuan currency’s reference rate each day, the country’s foreign exchange trading platform, overseen by the central bank, said on Friday.
The latest move would be the second time this year the authorities change how they calculate the yuan’s guidance rate in an effort to stabilise the currency and reduce price swings.
The onshore yuan traded at 6.8452 as of 0143 GMT after hitting a high of 6.8354 in early trade, the highest intraday level since Jan. 24. The offshore yuan was traded at 6.8326 per dollar.
China’s markets were closed on Monday and Tuesday for a holiday.
Reporting by Winni Zhou and John Ruwitch; Editing by Kim Coghill