China's Yuan Surges Past 6.70 Against Dollar Amid Central Parity Rate Adjustments

The Chinese yuan has breached the 6.70 level against the US dollar for both onshore and offshore rates, marking recent highs.

This week's central parity rate saw a cumulative increase of 222 basis points, with each day showing an upward adjustment: up 45 basis points on September 14, up 28 basis points on September 15, up 42 basis points on September 16, and up 48 basis points on September 17.

According to Wang Qing, chief macro analyst at Golden Credit Rating, the yuan's strength is driven by two factors: the absorption of the Federal Reserve's rate-hike effect and the consistent adjustment of the central parity rate in a stronger direction.