China sets yuan midpoint at highest in 3 months

SHANGHAI, Dec 21 (Reuters) - China's central bank set its official yuan midpoint at the highest level in three months at 6.5795 per dollar on Thursday, reflecting steady demand for spot yuan the previous day.

Thursday's official midpoint, 271 pips or 0.41 percent firmer than the previous fix of 6.6066 per dollar, was the strongest since Sept.20.

The move in the official midpoint was also the biggest one-day strengthening in percentage terms since Oct.11.

China's yuan strengthened through the day on Wednesday, reaching its highest level in three months against the U.S. dollar at the official local close, supported by a firmer midpoint fixing and dollar sales driven by year-end seasonal flows. (Reporting by Winni Zhou and Brenda Goh; Editing by Shri Navaratnam)