China’s currency rallied against the dollar and most global equity indices were up on the first day of trading in 2021.

The onshore-traded renminbi strengthened 1 per cent to Rmb6.4648 per greenback on Monday as it crossed the important 6.5 per dollar threshold for the first time since June 2018. The dollar, as measured against a basket of its trading peers, fell 0.3 per cent.

The renminbi has now erased nearly all the losses it has suffered against the dollar since President Donald Trump kicked off a trade war between the countries. The currency has been boosted partly due to the country’s economic recovery from the coronavirus pandemic and hopes that the incoming Biden administration could lead to reduced tensions between Beijing and Washington.