The Chinese yuan strengthened to a 32-month high against the dollar on Monday, after the People's Bank of China lifted its official guidance rate.

The onshore yuan rose to a high of 6.97 per dollar at 1245 GMT, the strongest level since May 2023. Meanwhile, its offshore counterpart last fetched 6.96 per dollar.

The central bank set the midpoint rate at 7.0108 per dollar -- the firmest level since September 2024.

The yuan gained 4.5 percent against the dollar in 2025, marking its best annual performance since 2022, supported by a broadly weaker greenback and increased year-end foreign exchange settlements by Chinese exporters.