August 27, 2018 / 2:02 AM / in 8 months

Yuan jumps to 2-1/2 week high as PBOC reinstates fix factor

SHANGHAI, Aug 27 (Reuters) - China’s yuan surged to a 2-1/2 week high against the U.S. dollar in early trade on Monday, after the central bank revived a “counter-cyclical factor” in its daily fixing to support the currency.

Spot yuan opened onshore trade at 6.8080 per dollar, the strongest level since Aug.8. As of 0144 GMT, it was trading at 6.8205 per dollar.

Its offshore counterpart followed, rising to a high of 6.7818, its strongest since July 31. It traded at 6.8110 as of 0144 GMT.

China’s central bank on Monday lifted its official yuan midpoint more than expected to 6.8508 per dollar, compared with Friday’s fix of 6.8710.

The People’s Bank of China said on Friday that it was adjusting its methodology for fixing the yuan’s daily midpoint in order to keep the currency market stable, amid broad dollar strength and ongoing trade tensions between Washington and Beijing. (Reporting by Winni Zhou and John Ruwitch; Editing by Kim Coghill)

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