China lifts yuan midpoint to 3-1/2-month high

SHANGHAI, Dec 26 (Reuters) - China's central bank on Tuesday lifted its official yuan midpoint to the highest level in 3-1/2 months at 6.5416 per dollar, reflecting a strong spot yuan performance a day earlier.

Tuesday's official midpoint, 267 pips or 0.41 percent firmer than the previous fix of 6.5683 on Monday, was the strongest since Sept. 13.

China's yuan strengthened through the day in holiday-thinned trading on Monday, reaching its highest level in over three months against the dollar at the official local close, following a much strengthened official midpoint. (Reporting by Winni Zhou and Brenda Goh; Editing by Shri Navaratnam)