BEIJING, March 2 (Xinhua) -- The central parity rate of the Chinese currency renminbi, or the yuan, advanced against the U.S. dollar on Friday after two days of weakening.
The central parity rate of the yuan strengthened 18 basis points to 6.3334 against the U.S. dollar, according to the China Foreign Exchange Trade System.
The dollar strength came after Federal Reserve Chairman Jerome Powell, in his first Congress testimony, said that despite recent volatility of the financial market, Fed governors still plan on raising rates several times in 2018.
Analysts said Powell's hawkish comments bolstered market speculation for as many as three rate-hikes later this year.
In China's spot foreign exchange market, the yuan is allowed to rise or fall by 2 percent from the central parity rate each trading day.
The central parity rate of the yuan against the U.S. dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.
