China's yuan strengthens to more than 3-month high

BEIJING - The central parity rate of the Chinese currency renminbi (the yuan) strengthened 267 basis points to 6.5416 against the US dollar Tuesday, the highest level since Sept 13.

The yuan strengthened through the day Monday, reaching its highest level in over three months against the US dollar at the close, according to data of the China Foreign Exchange Trade System.

The country's banking liquidity is at a comparatively high level, and the central bank said it would not launch open market operations Tuesday.

In China's spot foreign exchange market, the yuan is allowed to rise or fall by 2 percent from the central parity rate each trading day.

The central parity rate of the yuan against the US dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.

China will maintain a proactive fiscal policy and prudent monetary policy in 2018 to foster high-quality development while containing financial risks.

"The proactive orientation of fiscal policy will be maintained, while the structure of fiscal spending should be optimized," said a statement released after the Central Economic Work Conference concluded last week.