The offshore yuan just touched its strongest level against the dollar since October.

The currency was up by 0.9% at 6.7611 per US dollar at 8:09 a.m. ET.

The offshore yuan has climbed 1.6% since Moody’s cut its rating on China’s debt a week ago, Bloomberg noted.

“Spurred in part by a funding squeeze in Hong Kong, the offshore yuan (CNH) has rallied 1.5% in the same time,” Marc Chandler, global head of currency strategy at Brown Brothers Harriman, said.

“Note that China’s officials have also formally introduced a new element (counter-cyclical adjustment) to the black box of the fixing. The suspicion is that officials want a stronger yuan to deter capital outflows, and allow the kind of reforms that would address some MSCI concerns,” he added.

The onshore yuan (CNY) is traded on mainland China, while the offshore yuan (CNH) is traded outside the mainland. The key difference between the two is that the CNH does not fluctuate within a tight band like the CNY, and it is free of China's controls.

For a more detailed explainer on CNH versus CNY head over here.

As for the rest of the world, here's the scoreboard as of 8:06 a.m. ET:

    The euro is up by 0.3% at 1.1221 against the dollar. Consumer prices in the eurozone rose at a 1.4% year-over-year clip in May, down from April's 1.9% year-over-year print, according to a flash estimate provided by Eurostat.The British pound is little changed at 1.2845 against the dollar. Separately, The Times reports that a YouGov poll released Wednesday predicted that Theresa May's Conservative Party could lose 20 seats in the June 8 general election while Jeremy Corbyn's Labour Party could gain 30, giving no party a majority.The Russian ruble is weaker by 0.4% at 56.7896 per dollar, while Brent crude oil, the international benchmark, is down by 2.1% at $48.64 per barrel.The US dollar index is little changed at 97.13 ahead of Chicago PMI and the Fed's Beige Book, which will be released at 9:45 a.m. ET and 2 p.m. ET respectively.