China sets yuan midpoint at 10-month high

SHANGHAI, Aug 9 (Reuters) - China's central bank set the yuan midpoint at 6.7075 per dollar on Wednesday, the strongest level since Oct. 10 2016, reflecting strength in the Chinese currency rather than U.S. dollar weakness, traders said.

Wednesday's official guidance was 109 pips or 0.16 percent firmer than the previous fix at 6.7184 per dollar.

Market players said the rise in the guidance on Wednesday was supported by gains in the spot yuan a day earlier.

China's yuan strengthened to a 10-month high against the dollar to breach a key psychological level at one point on Tuesday. (Reporting by Winni Zhou and John Ruwitch; Editing by Eric Meijer)