The onshore spot yuan rose to a high of 6.8593 at one point in afternoon trade, its strongest since June 21. It was trading at 6.8650 per dollar as of 0701 GMT.

A trader at a Chinese bank said market sentiment improved after Xi reiterated Beijing's vows to remove restrictions on foreign investment outside the country's so-called negative list, which sets out industries where foreign investment is limited or prohibited.

Low liquidity was another factor amplifying the price move, according to a second trader at a Chinese bank, as many investors had already closed out their positions ahead of the summit between the Chinese and U.S. presidents at the G20 summit in Osaka on Saturday.