BEIJING, Sept. 17 (Xinhua) -- The central parity rate of the Chinese currency renminbi, or the yuan, extended gains Thursday to hit a new high in 16 months against the U.S. dollar.

The yuan strengthened 150 pips to 6.7675 against the U.S. dollar, the strongest level since May 9, 2019, according to the China Foreign Exchange Trade System.

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.

After the continuous appreciation, the exchange rate of the RMB against a basket of currencies is still within the reasonable range, according to Li Liuyang, a senior analyst with China Merchants Bank.

Li expected yuan's effective exchange rate to extend its upward trajectory, fueled by more positive factors in China's economic fundamentals in the rest of 2020.