China sets yuan midpoint at 5-mth high as trade deal signing nears

SHANGHAI, Jan 13 (Reuters) - China's central bank lifted its official yuan midpoint to a more-than-five-month high on Monday, reflecting solid gains in the spot yuan in the previous session amid optimism over Sino-U.S. trade relations.

The People's Bank of China (PBOC) set the midpoint rate at 6.9263 per dollar prior to the market open, 88 pips or 0.13% firmer than the previous fix of 6.9351 and the strongest since Aug. 5, 2019.

A U.S.-China Phase 1 trade deal is due to be signed at the White House on Wednesday to ease U.S. President Trump's 18-month trade war aimed at altering China's trade and economic practices. But it will leave in place tariffs on about $370 billion worth of Chinese imports per year.

(Reporting by Winni Zhou and Andrew Galbraith; Editing by Kim Coghill)