The yuan ended slightly higher on Friday after the Chinese central bank set its mid-point reference rate at a four-month high against the dollar, which fell to its lowest in more than one year against major currencies overnight.
The People's Bank of China set the daily yuan mid-point at 6.8270 to the dollar, the highest since May 25 and up from 6.8288 on September 30, the last day of trade before the onshore market closed for an eight-day National Day holiday. Spot yuan closed at 6.8256 against the dollar, slightly stronger than the close of 6.8263 on September 30.
The dollar index rose 0.37 percent to 76.249 on Friday, bouncing from a 14-month low of 75.767 although it has dropped nearly 2 percent over the past month. On Friday, a pair of surveys of purchasing managers showed that China's services sector paused for breath last month but remained firmly in expansionary territory.