Yuan Strengthens As Fed Holds Interest Rates Steady

The yuan rose to its highest level against the dollar since July 16, after dovish comments from the U.S. Federal Reserve dampened expectations of further rate hikes.

The yuan briefly dipped below the 6.7-per-dollar line in morning trading on Thursday for the first time in six and a half months, after the People's Bank of China (PBOC) set the yuan's daily parity rate at 6.7025 per dollar, 318 pips below the previous day's rate. The PBOC allows the yuan to trade at 2% either side of this rate.