SHANGHAI (Reuters) - China’s yuan rose and finished its domestic session on Wednesday at the firmest against the U.S. dollar since November 2015, underpinned by broad weakness in the greenback.
A run of dollar weakness has driven gains for the yuan to about 1.9 percent this year. In 2017, the Chinese currency strengthened around 6.8 percent, following three years of depreciation against the dollar.
The onshore yuan opened at 6.3983 per dollar and changed hands at 6.3875 by the 0830 GMT domestic close, the strongest such close since Nov. 20, 2015.
The dollar slid to three-year lows against a basket of major peers on Wednesday, pressured by simmering concerns that the U.S. currency’s yield advantage will start to erode as major central banks head toward unwinding their massive stimulus.
The dollar index, a gauge that measures the greenback’s value against a basket of six major currencies, slipped below the 90 threshold for the first time since December 2014. It stood at 89.885 as of 0830 GMT.
Reporting by Winni Zhou and John Ruwitch; Editing by Jacqueline Wong