Dollar strength weighed on China’s currency as the central parity rate of the yuan weakened to 6.7917 against the U.S. dollar, according to the China Foreign Exchange Trade System.
China — China’s currency, the yuan, weakened against the U.S. dollar on Tuesday after the central parity rate was set 19 pips lower at 6.7917 per dollar.
The adjustment was announced by the China Foreign Exchange Trade System, which publishes the daily reference rate for the renminbi, also known as the yuan.
Under China’s managed floating exchange rate regime, the yuan is permitted to rise or fall by up to 2 per cent from the central parity rate during each trading day in the spot foreign exchange market.
The central parity rate is determined using a weighted average of prices submitted by market makers before the opening of the interbank foreign exchange market on each business day. The daily fixing serves as a benchmark for trading and reflects China’s managed approach to regulating movements in the value of its currency against the U.S. dollar.
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