China’s yuan weakened slightly against the dollar in early trade on Tuesday after the central bank set a weaker midpoint.
The People’s Bank of China set the midpoint rate at 6.3721 per dollar prior to market open, weaker than the previous fix of 6.3676, and weaker than the previous day’s closing quote of 6.3691.
The spot market opened at 6.3719 per dollar and was changing hands at 6.3719 in early trade, 28 pips away from the previous close and in line with the midpoint.
The spot rate is allowed to trade with a range 2 percent above or below the official fixing on any given day.
The offshore yuan was trading 0.48 percent weaker than the onshore spot at 6.4026 per dollar.