SHANGHAI - China's central bank on Wednesday lifted its official yuan midpoint for the second day in a row to the strongest in nearly four months to reflect gains in the spot price a day earlier.

The yuan advanced further to a fresh 3-1/2-month peak and tested key resistance on Tuesday

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The People's Bank of China (PBOC) set the midpoint rate at 7.0207 per dollar prior to the market open, 103 pips, or 0.15 percent, firmer than the previous fix of 7.0310, and the strongest since March 17.

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The yuan advanced further to a fresh 3-1/2-month peak and tested key resistance on Tuesday.