Yuan improves

Shanghai

China´s yuan hit a two-week high against the U.S. dollar on Thursday, after the central bank set a sharply firmer midpoint and President Donald Trump said the dollar was too strong and backed away from labelling China a currency manipulator.

The greenback slumped broadly on Trump´s comments. The global dollar index fell to 100.06 from the previous close of 100.78, the lowest in two weeks.

Prior to market opening, the People´s Bank of China set the midpoint rate at 6.8651 per dollar, the highest since Feb. 17 and firmer than the previous fix 6.8940. The spot market opened at 6.8740 per dollar and was changing hands at 6.8790 at midday, 140 pips away from the previous late session close and 0.20 percent away from the midpoint. The spot rate is currently allowed to trade with a range 2 percent above or below the official fixing on any given day.