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Yuan Rises Most Since 2005 as PBOC Mulls Easing Capital Controls

Chinese yuan banknotes sit in a container at a stall in Shenzhen, China.

Chinese yuan banknotes sit in a container at a stall in Shenzhen, China.

Photographer: Brent Lewin/Bloomberg
Bloomberg News

The yuan surged the most since China scrapped a dollar peg in 2005 as the central bank said it will consider a trial program in the Shanghai free trade zone allowing domestic individual investors to directly buy overseas assets.

The Chinese currency rose 0.62 percent, the most since July 2005, to close at 6.3175 a dollar in Shanghai, according to China Foreign Exchange Trade System prices. The offshore yuan in Hong Kong climbed 0.51 percent to 6.3260 as of 4:41 p.m. local time. The People’s Bank of China earlier strengthened its daily onshore reference rate by 0.16 percent to 6.3495.