On Monday, the Yuan showed the most significant increase since 19 March due to higher reference rate of People's Bank of China - the country's Central Bank, the rally in the stock market and reports that China's leading banks sold dollars to support the national currency, reports Bloomberg.
In Shanghai, the Yuan has risen in price by 0.35% to 6.3230 for a dollar, the maximum for almost two months. Meanwhile, in Hong Kong, the value of the Chinese national currency rose 0.27% to 6.3215/$ 1.
On Monday, the PBOC has set the official exchange rate of the Yuan by 0.14% more than the level announced by the central bank on October 9, at 6.3406/$ 1, which is the highest value since August 12.
The Shanghai Composite Stock Index rose to a maximum of seven weeks, as investors expect that the Chinese government will strengthen the measures to support the economy.
At the annual meeting of the International Monetary Fund (IMF) in Peru, the head of the PBC reiterated China's commitment to the idea of a more flexible exchange rate regime.
According to SWIFT, in August, the Yuan for the first time has risen to fourth place among world currencies which are the most used in international transactions, ahead of the Japanese yen. However, its share in the calculation remains low - 2.8%.
Based on the estimation of China International Capital Corp. analysts, the probability of inclusion of the Yuan in the basket of currencies for the calculation of special drawing rights (SDRs or SDR) of the IMF in this year exceeds 70%.
On Monday, the US dollar fell against its Canadian rival, being traded near two-month low, as the minutes of the last meeting on the definition of the monetary policy of the Federal Reserve continues to constrain demand for the dollar.
Trading volumes are expected to be low on Monday as US markets are closed due to Columbus Day.
In early US trade, USD/CAD reached 1.2902, the session low; the pair subsequently consolidated at 1.2931, shedding 0.12%.
The pair is likely to receive support at 1.2858, the low of July 29 and resistance at 1.3022, Friday's high.
Minutes of the Fed's September meeting released on Thursday showed that the majority of leadership members are inclined to raise rates this year.