Chinese yuan strengthens against USD Monday

BEIJING - The central parity rate of the Chinese yuan strengthened sharply against the US dollar Monday, following its two-day downward performance.

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, according to the China Foreign Exchange Trade System, 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 two 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.

The US dollar slipped against major currencies after the US Federal Bureau of Investigation's (FBI) decision to review new e-mails related to the investigation into Democratic presidential candidate Hillary Clinton's emails Friday.

Many experts believed the yuan will maintain overall stability against the US dollar and the chance for a sharp depreciation is slim, backed by the nation's stable economic growth, ample foreign exchange reserves and sound fiscal condition.