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China lifts yuan midpoint to strongest level in 7 months

SHANGHAI, Aug 19 (Reuters) - China’s central bank lifted its official yuan midpoint to the strongest level in nearly seven months on Wednesday to reflect strength in the spot market a day earlier.

The People’s Bank of China (PBOC) set the midpoint rate at 6.9168 per dollar prior to the market open, 157 pips or 0.23% firmer than the previous fix of 6.9325. And Wednesday’s official fixing, largely matching market forecasts, was the loftiest since Jan.23, 2020.

Onshore spot yuan stood at its strongest in nearly seven months by the end of trading on Tuesday, with investors relieved that a U.S.-China trade deal appeared intact despite rising political frictions on a host of other issues.

Reporting by Winni Zhou and Andrew Galbraith Editing by Shri Navaratnam