China’s yuan jumps to 4-month high 

The Chinese yuan surpassed its daily benchmark exchange rate for the first time in four months, supported by forecasts that the US dollar had peaked and a possible shift in China’s economy.

The yuan rose 0.4% in internal and external transactions, higher than the daily reference currency set by the People’s Bank of China for the first time since July.

Beijing allows the yuan to trade at a price higher than its reference price, or 2% lower in the domestic market.

China’s currency has been among the worst performers in Asia this year, despite China taking a series of measures to control its decline amid a weak economic recovery.

However, pressures on the yuan eased in November thanks to the depreciation of the US dollar, and new signs of thawing in relations between Beijing and Washington emerged.

On Tuesday, the People’s Bank of China raised its daily reference rate by 0.3% to 7.1406 yuan per dollar, the highest increase since July. This has caused the yuan’s price to jump to a four-month high in domestic and foreign markets.