China’s currency has rallied to its highest level in more than two years, wiping out most of the losses suffered since the start of the country’s trade war with the US, reported the Financial Times.
The onshore-traded renminbi strengthened 1% to RMB 6.4614 per greenback on Monday as it crossed the important 6.5 per dollar threshold for the first time since June 2018. That came as the US currency, as measured against a basket of its international peers, fell 0.3%.
The renminbi has been boosted by China’s economic recovery from Covid-19 after authorities successfully controlled the virus, as well as hopes that the incoming US administration of Joe Biden could lead to reduced tensions between Beijing and Washington. The Chinese currency is roughly now back to the level it was before President Donald Trump kicked off a trade war between Beijing and Washington in mid-2018.