BEIJING, May 11 (Xinhua) -- The central parity rate of the Chinese currency renminbi, or the yuan, strengthened 244 basis points to 6.3524 against the U.S. dollar Friday, according to the China Foreign Exchange Trade System.
It was the strongest level since May 4, putting an end to four straight days of weakening.
Analysts attributed the strengthening to an overnight correction of the U.S. dollar. The dollar index, which measures the greenback against six major currencies, fell Thursday after inflation data in the United States did not meet market expectations.
The yuan's central parity rate has weakened against the dollar in recent weeks after a 3.9-percent strengthening in the first quarter.
Investment bank China International Capital Corporation (CICC) forecast that the yuan's exchange rate would be supported by the resilience of the Chinese economy and limited room for further dollar appreciation.
Market demand for the yuan remains stable, and the yuan has continued to appreciate against a basket of currencies recently, the CICC said in a research note.
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.
