Yuan Reaches Three-Year High Amid Weak Dollar
China's yuan has been performing strongly against the US dollar, hovering near its three-and-a-half year peak. The onshore yuan traded in a tight range in morning deals and was last up 0.06 percent at 6.7221 per dollar as of 0329 GMT.
This comes as investors shift their attention to the Jackson Hole symposium for fresh policy signals from the Federal Reserve that could sway currency markets. The US Treasury's bond buyback plan has been viewed as a temporary fix, raising concerns about officials' increasingly interventionist approach.
The dollar is on shaky ground and set for a weekly loss, with investors viewing the bond buyback plan as merely a temporary solution to stabilize the market. This has led to a weakening US dollar, which in turn has pushed the yuan closer to its 3-1/2 year peak.