SHANGHAI, Dec 5 Reuters China39;s yuan , firmed past the closely watched 7perdollar level on Monday, hitting its strongest since midSeptember, as Beijing eased some of its strict COVID19 curbs, potentially attracting fresh foreign inflows.

The Chinese currency was also bolstered by expectations of slower U.S. interest rate hikes, which knocked the dollar index to near fivemonth lows.

But some warn that China39;s road for economic recovery could be bumpy and that the yuan will remain volatile.

Potential policy Uturns or worsening of the infections could be seen as opportunities to short the currency, Maybank said in a note to clients.

The onshore yuan jumped roughly 1.4 to as high as 6.9507 on Monday morning, its strongest since Sept. 13, tracking the central bank39;s firmer midpoint guidance .

Last week, the yuan jumped about 1.6, its biggest weekly gain since 2005 amid expectations authorities will continue to loosen strict COVID curbs.

In the offshore market, the yuan gained 1.1 to a twomonth high of 6.9438, after posting record weekly gains.

More cities, including financial hub Shanghai and Urumqi in the far west, announced an easing of curbs over the weekend as China tries to make its zeroCOVID policy more targeted and less onerous after unprecedented protests against restrictions.

China39;s benchmark CSI300 index jumped nearly 10 in November, as mainland stocks witnessed monthly net inflows exceeding 60 billion yuan 8.55 billion via the crossborder Stock…