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BEIJING, April 20 -- The renminbi, or the yuan, strengthened to a four-month high on Wednesday as market sentiment began to stabilize after encouraging economic data signaled improvement in the economy.

The central parity rate of the yuan advanced to 6.4579 against the U.S. dollar, up 121 basis points or 0.19 percent from the previous trading day, according to China Foreign Exchange Trading System.

The yuan has seen steady appreciation for three-consecutive days thanks to an array of official figures that indicate the economy may be bottoming out.

The country's GDP grew 6.7 percent year on year in the first quarter of 2016, which was in line with market expectations and remained within the government's targeted range of between 6.5 and 7 percent for 2016.

In March, exports logged a sharp recovery, the official index tracking factory activity returned to growth for the first time since July 2015, and foreign exchange reserves posted their first monthly increase since November.

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.