Chinese yuan strengthens against US dollar Friday

BEIJING - The Chinese currency strengthened against the US dollar Friday to its highest level since October last year as the dollar struggles following weak US manufacturing data.

The central parity rate of the Chinese currency, the renminbi or the yuan, strengthened 79 basis points to 6.7132 against the US dollar Friday, according to the China Foreign Exchange Trade System.

Weighed by largely uninspiring US economic data, which have added to uncertainty about the pace of future Federal Reserve policy tightening and political instability in the US, the dollar has been on the back foot throughout the week.

Data from the US Institute of Supply Management (ISM) showed overnight that its manufacturing index fell more than expected, adding a fresh dose of both factors.

The market is awaiting the closely watched US non-farm jobs report later in the session for potential relief.

On the other hand, China's economy continued steady expansion in the first half of this year with GDP up 6.9 percent, supporting the Chinese currency.

Under China's market-based, managed floating exchange rate system, the yuan can rise or fall by 2 percent against the US dollar from the central parity rate each trading day.

Measured by the central parity rate, the yuan has appreciated more than 2 percent against the greenback so far this year.