Yuan hits one-month high on economic hopes

The yuan rose to a one-month high Tuesday after manufacturing data beat expectations, which some analysts saw as an indication that the currency may rebound in the months to come, Bloomberg reported. The currency touched 6.3461 per dollar, its strongest level since May 29, according to the China Foreign Exchange Trade System. China’s central bank set its daily fixing for the yuan at 6.3146 per dollar, 0.16% stronger than the day before and the highest level in a week. The Purchasing Managers’ Index fell to 50.2 in June from 50.4 in May, exceeding analyst expectations. “People generally think domestic activity bottomed out in the second quarter,” said Andy Ji, a strategist at Commonwealth Bank of Australia. “The PMI is a little piece of evidence of that. The yuan may resume its appreciation trend again.”