CHENGDU, Jan.6 (NBD) -- Yesterday, both onshore and offshore RMB strengthened against USD. Offshore RMB has broken down key resistance level 6.80 against the green back on Thursday.

Analysts say this has something to do with the liquidity strain on the offshore RMB market and China's stricter scrutiny on foreign exchange purchases. In addition, Fed's December meeting showed little chance of interest hikes at the early stages of 2017, which also helped shore up the yuan.