The yuan strengthened past 6.72 per dollar in both onshore and offshore trading on Thursday, reaching its strongest level in more than three and a half years and lifting its appreciation this year above 3.7%. The onshore yuan touched 6.7180, later trading around 6.7183, while the offshore yuan reached 6.7177. The People’s Bank of China set the central parity rate at 6.7807, 22 basis points stronger than the previous session but about 640 basis points weaker than the 6.7167 market consensus. PBOC Governor Pan Gongsheng said at the G20 finance ministers and central bank governors meeting that China neither needs nor intends to pursue trade advantages through currency depreciation. He reiterated China’s managed floating exchange-rate regime, market-based rate formation and efforts to prevent herding and irrational expectations. Traders said major Chinese banks have bought dollars near 6.72, limiting the prospect of a break below 6.70. Goldman Sachs projects gradual annual yuan appreciation of 3% to 5%, a rate of 6.4 per dollar in 12 months and potentially 5.5 within five years, while J.P. Morgan Asset Management strategist Zhu Chaoping expects near-term gains to remain limited.