China's yuan strengthened to its strongest level in 15 months against the U.S. dollar on Monday after the greenback depreciated amid concerns about the economy.
The central parity rate of the yuan strengthened by six basis points to 6.1079 against the greenback, the strongest level since Feb. 19, 2014, according to the China Foreign Exchange Trading System.
The dollar declined against other major currencies as weak U.S. economic data prompted traders to push back their expectations for when the Federal Reserve would raise interest rates.
A preliminary reading of consumer sentiment in May by the University of Michigan came in at 88.6, down from a final April level of 95.9 and the lowest level since November. That, combined with a disappointing industrial production activity reading from the Federal Reserve, pushed the dollar to a three-month low against the euro on Friday.
The yuan's central parity rate is based on a weighted average of prices offered by market makers before the opening of the interbank market each trading day. The spot rate is allowed to trade within 2 percent above or below the central parity rate.
