The People's Bank of China set the yuan central parity rate at 6.7698 per US dollar on September 14, marking an upward adjustment of 45 basis points from the previous fix.

This adjustment comes as market expectations for a Federal Reserve interest rate hike this week remain elevated, with traders closely monitoring the upcoming policy decision.

According to the CME Group's FedWatch tool, the probability of the Federal Reserve leaving interest rates unchanged at its September meeting stands at 13.8%, while the likelihood of a cumulative 25-basis-point hike is pegged at 86.2%.

Looking further ahead, the tool indicates that for the October meeting, the probability of maintaining the current rate is 6.9%, with a 50.1% chance of a cumulative 25-basis-point hike and a 42.9% probability of a cumulative 50-basis-point increase.

The stronger yuan fix signals renewed investor confidence in the Chinese currency, even as the global monetary policy outlook remains a key factor driving foreign exchange movements.