Chinese yuan rises to highest level since February 2023

China's yuan strengthened to its highest level since February 2023 on Thursday, supported by a weaker US dollar and a firmer reference rate set by the country's central bank.

The offshore yuan, which trades more freely outside mainland China, rose to around 6.7530 against the dollar as of 1045GMT, its strongest level since February 2023.

The onshore yuan also traded near 6.7551 per dollar.

A decline in the dollar-yuan exchange rate indicates an appreciation of the Chinese currency.

The People's Bank of China set the yuan's daily midpoint at 6.7892 per dollar, its strongest fixing since February 2023, signaling that authorities remain comfortable with a gradual strengthening of the currency.

The yuan's gains followed weakness in the US dollar after the US Federal Reserve left its benchmark interest rate unchanged at a range of 3.5% to 3.75% on Wednesday.

The dollar later recovered some of its losses amid heightened geopolitical tensions.