The central parity rate of the Chinese currency, the renminbi or the yuan, strengthened 101 basis points to 6.5909 against the U.S. dollar Friday, rising for a fifth consecutive day.

It was the first time the rate hit below 6.6 since June of last year. During the week, the central parity rate of the yuan strengthened 670 basis points against the U.S. dollar, a rise that analysts have partly attributed to a firming economy.

Latest official data showed that China's manufacturing activity expanded for the 13th consecutive month in August, with the manufacturing purchasing managers' index (PMI) reaching 51.7 in August, up from 51.4 in July and notably higher than the market expectation of 51.3.

A private survey released Friday added to evidence of a stabilizing economy. The Caixin China General Manufacturing Purchasing Managers' Index (PMI) stood at 51.6 in August, up from 51.1 in July, signaling an improvement in overall operating conditions, according to the survey conducted by financial information service provider Markit and sponsored by Caixin Media Co. Ltd.

The yuan's rise Friday came despite a slight recovery of the U.S. dollar index, which had slipped to the lowest level since January 2015 on Tuesday.

The index, which tracks the greenback's value against a basket of major currencies, regained ground to stand above 92.6 in early trading Friday, after hitting a low of 91.6 Tuesday.

The Chinese yuan will continue its momentum given a slew of positive economic indicators in coming months that will inject fresh impetus to the economy, according to Sheng Songcheng with the central bank.

In China's spot foreign exchange market, the yuan is allowed to rise or fall by 2 percent from the central parity rate each trading day.

The central parity rate of the yuan against the U.S. dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.