The central parity rate of the Chinese yuan strengthened 492 basis points to 6.8939 against the U.S. dollar Tuesday, according to the China Foreign Exchange Trade System.
The appreciation was the largest since June 2017, while the new central parity rate was the strongest since Sept. 28, 2018, data from the system showed.
Currently, the yuan's exchange rate is showing greater flexibility in two-way fluctuation, with exchange rate expectation staying generally stable, China's central bank governor Yi Gang said in an article Monday.
"The yuan's exchange rate remains generally stable at a reasonable level near its equilibrium," Yi said.
In China's spot foreign exchange market, the yuan is allowed to rise or fall by 2 percent from the central parity rate each trading day.
The central parity rate of the yuan against the U.S. dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.