China set on Monday the strongest yuan exchange rate in years after Beijing came under renewed pressure at the Group of 20 summit over the weekend to let the currency appreciate.

The People's Bank of China said it set the central parity rate — the centre point of the currency's allowed trading band — at 6.7890 to the dollar, a fraction stronger than Friday's 6.7896. It was the strongest level policymakers have set since China un-pegged the currency in July 2005 and moved to a tightly managed floating exchange rate, but analysts said the move did not signify a major shift. In Monday trade, the yuan was weaker at around 6.7912 to the dollar.

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