Chinese yuan weakens against USD Tuesday

BEIJING - The central parity rate of the Chinese yuan slipped against the US dollar Tuesday after a sharp appreciation the previous trading day.

The central parity rate of the Chinese currency, the renminbi or the yuan, weakened 93 basis points to 6.7734 against the US dollar Tuesday, according to the China Foreign Exchange Trade System.

The central parity rate of the Chinese currency, the renminbi or the yuan, strengthened 217 basis points to 6.7641 against the US dollar Monday, firming from 6.7858 on Friday, a six-year low.

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 US dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.

There is no basis for persistent yuan depreciation, as China is witnessing steady economic growth, progress in economic restructuring and a stable financial market, said Pan Gongsheng, head of the State Administration of Foreign Exchange (SAFE), according to a statement released by SAFE on Monday.