Yuan strengthens slightly vs dollar on Monday

The Chinese yuan strengthened slightly against the US dollar on Monday, with the central parity rate set at 7.1043 yuan per dollar, Xinhua reported, citing the China Foreign Exchange Trade System (CFETS).

This rate serves as a reference point for the yuan’s trading range, allowing it to fluctuate within a two per cent band above or below the central parity rate each trading day.

The specific exchange rate is determined by market forces within this range, with the CFETS calculating the central parity rate daily based on a weighted average of prices from market makers before the interbank market opens.