RMB hits new three-month high on first trading day

Chinese currency appreciated to its highest level in more than three months as the US dollar index weakened on the first trading day of 2018, indicating the market's expectation of stable economic growth and confidence in financing deleveraging efforts.

The daily trading reference of the yuan's exchange rate against the US dollar rose to 6.5079 on Tuesday, compared with 6.5342 on Friday, the strongest since Sept 11 last year, according to data from the China Foreign Exchange Trade System (CFETS).

The onshore spot rate once hit 6.5062 before the closing while in the offshore market it reached a peak of 6.5231.