Chinese yuan weakens to 6-year low against USD

In China's spot foreign exchange market, the yuan is allowed to rise or fall by 2 per cent from the central parity rate each trading day.

By: IANS | Beijing | Published:October 28, 2016 10:18 am
China, China debt cutting, foreign investors, China corporate debt levels, lowering debt levels, China economy, business news, world market, latest news, indian express In China’s spot foreign exchange market, the yuan is allowed to rise or fall by 2 per cent from the central parity rate each trading day. REUTERS/Kim Kyung-Hoon

The central parity rate of the Chinese yuan weakened to a six-year low against the US dollar on Friday. The central parity rate of the yuan weakened 122 basis points to 6.7858 against the US dollar, according to the China Foreign Exchange Trade System.

In China’s spot foreign exchange market, the yuan is allowed to rise or fall by 2 per cent from the central parity rate each trading day, Xinhua news agency reported.

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.