The Chinese yuan has risen for the sixth consecutive trading day against the US dollar to tap a 7 month high.
The RMB-US middle rate on 7 June was 6.7858, rising 76 basis points compared to the middle rate of 6.7934 on the previous trading day.
On June 6 the US dollar index continued declining to reach its lowest level since 10 November last year, pushing the the RMB up one basis point to its highest level in six months.
Leading financial institutions have upgraded their RMB exchange rate expectations in the wake of the yuan’s recent strong performance, with Morgan Stanley and HSBC both adjusting their forecast for end of 2017 from 7.10 to 6.90.
The recent incorporation of non-cyclical factors into the pricing model for the RMB is also expected to stabilise exchange rates by mitigating the impact of closing prices and wild market swings.