China's yuan surged to its strongest level in over 16 months on Wednesday as investors reacted to a series of stimulus measures unveiled by Beijing to combat the country's economic slowdown.

The US dollar to offshore Chinese yuan, or CNH rate fell to as low as 6.9951, the first time it breached the 7 per dollar level since May 2023.

China's yuan hit a 16-month high against the U.S. dollar on Tuesday, after the central bank of the world's second-largest economy revealed new stimulus measures, while the greenback extended declines against other major currencies after soft data on the consumer.