The Chinese Yuan reached its highest level this year after the central bank announced measures to free up funds at banks to spur economic growth.

China's economy boosted rural credit by cutting reserve-requirement ratios for an additional 379 branches of Agricultural Bank of China Ltd., the nation's third-biggest lender by market value

As, the central bank set the yuan's reference rate 0.14% stronger at 6.3004 per dollar. The currency strengthened 0.17% in the last 30 minutes of trading.

The yuan rose 0.37%to 6.2997 per dollar in Shanghai, which was the biggest increase since Dec. 30.

The currency is allowed to move as much as 0.5% either side of the daily fixing. One-month implied volatility, a measure of exchange-rate swings used to price options, was at 2.50% from 2.45% yesterday.