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Renminbi hits strongest level in 7 months as Xi visits Hong Kong

China’s currency firmed to its strongest level against the dollar since November 9 on Thursday as Xi Jinping arrived in Hong Kong for the twentieth anniversary of the territory’s handover from the UK.

The onshore exchange rate for the renminbi (CNY) was sitting 0.3 per cent firmer at Rmb6.78 per dollar, on track for a third straight day of gains and bringing it 3 per cent stronger for the week. It had been as low as Rmb6.7732 in morning trade.

China’s central bank set the midpoint around which the currency can move 1 per cent in either direction at Rmb6.794 on Thursday morning, 0.2 per cent stronger from the previous day.

The offshore rate (CNH), which is not bound by that trading band, was also 0.2 per cent firmer at Rmb6.7889. That came as the overnight rate for renminbi-denominated loans in Hong Kong, where most CNH trading occurs, was up 0.2 percentage points from Wednesday’s level at 1.45656 per cent.

The dollar index measuring the greenback against a basket of peers was down 0.1 per cent at 95.904.