The Chinese yuan advanced against the U.S. dollar in Asian deals on Monday, after data showed that China’s manufacturing activity expanded in June, reaching a 7-month high.
Survey results released by HSBC and Markit economics showed that China flash manufacturing PMI improved to 50.8 in June from 49.4 in May. The index beat forecasts for a reading of 49.7.
The yuan climbed to a 4-day high of 6.2236 against the greenback, compared to last week’s closing quote of 6.2245.The next possible upside target for the yuan is seen around the 6.21 zone.
The People’s Bank of China set today’s central parity rate for the yuan at 6.1557 per dollar, compared to Friday’s reference rate of 6.1524. The central bank sets the central parity rate every morning and allows the currency to fluctuate from that level.