SHANGHAI: China’s yuan rose to its highest level in more than 14 months against the dollar on Tuesday after an equally strong midpoint setting by the central bank and on year-end exporter demand. The onshore yuan hit 7.0417 per dollar in early trade, the strongest level since September 30, 2024. Prior to the market opening, the People’s Bank of China set the midpoint rate at 7.0602 per dollar, the firmest fix since October 9, 2024 and 158 pips weaker than a Reuters’ estimate. The spot yuan is allowed to trade 2% either side of the fixed midpoint each day. Authorities have been consistently setting the fix weaker than Reuters’ estimates since late November, limiting the room for sharp gains in the spot rate. In the near term, the yuan is likely to gain modestly against the dollar though trading is expected to remain thin and volatility low, said analysts at Nanhua Futures. They cited signals from last week’s Central Economic Work Conference that policymakers aim to keep the currency “basically stable at a reasonable and balanced level” in 2026, alongside a gradual pickup in seasonal corporate FX conversions. Exporters usually convert a larger share of foreign exchange receipts for various payments and administrative requirements towards the end of the year. The spot yuan opened at 7.0474 per dollar and was last trading at 7.0419 as of 0244 GMT, 63 pips firmer than the previous late session close. The offshore yuan fetched 7.0377, up about 0.06% in Asian trade, hovering near its lowest level in two months. The dollar index, which measures the greenback against a basket of six currencies, was 0.028% lower at 98.23. Beyond the combined US October and November jobs reports due later on Tuesday, investors are also awaiting Thursday’s inflation print, though several key components will be missing after the longest government shutdown on record halted data collection.