Chinese yuan weakens slightly against dollar

The Chinese yuan weakened slightly against the US dollar on Wednesday, with the China Foreign Exchange Trade System (CFETS) setting the central parity rate at 7.1077 per dollar, down 8 pips from the previous day, Xinhua reported.

China allows the yuan to fluctuate within a two per cent band above or below the central parity rate each trading day.

The central parity rate is not directly set by the government but rather calculated based on a weighted average of prices offered by market makers before the opening of the interbank foreign exchange market each business day.