The yuan's midpoint against the U.S. dollar was fixed at 6.7807 on Wednesday, according to ETNet, up 22 pips from the previous session and the strongest since February 8, 2023.

The fix was 640 pips weaker than market forecasts.

The onshore yuan opened 9 pips higher at 6.7210 after closing at 6.7219 in the prior session.

Market participants said the yen's rebound has helped ease external pressure on the dollar, supporting a firmer fixing for the yuan.

They expect the spot yuan to drift higher in a stable range. Investors are also watching Friday's nonfarm payrolls report, which could shape expectations for the Federal Reserve's rate path.