On Wednesday, the Chinese yuan appreciated significantly as higher-than-anticipated business activity figures increased expectations of an economic recovery in the nation. This shored up other currencies that are vulnerable to China’s climb for the day.

The Chinese yuan edged 0.4% gearing away from its dips this year, as the China's composite purchasing managers' index reached its peak in more than a decade, buoyed by robust manufacturing and non-manufacturing activity.

Versus the US dollar, the offshore Yuan climbed by 0.5%, as the data showed that China's economic recovery picked up steam over the past month after the nation lifted the majority of its anti-COVID measures in January.

As worries about an aggressive Federal Reserve and rising U.S. interest rates remained, the majority of Asian currencies were still suffering significant losses for the month of February. After making a significant advance in February, the dollar persisted to a level that was over two months high against a basket of currencies.