Yuan at two-week low

The yuan ended down at a two-week low versus the dollar on Tuesday after the People's Bank of China set a weaker mid-point in the wake of a jump in the US dollar index in global markets. But the 39-pip fall in the PBOC's mid-point, or the level from which the yuan may rise or fall 0.5 percent each day, lagged far behind a jump of 1.1 percent in the dollar index the day before.
Spot yuan closed at 6.4722 per dollar, a two-week low and weaker than Monday's close of 6.4671. It has now appreciated 5.47 percent since it was depegged from the dollar in June 2010 and 1.82 percent so far this year. Before trade began the PBOC fixed the yuan's mid-point at 6.4748 against the dollar, down from Monday's 6.4709. The central bank uses the fixing to guide the currency's trading on behalf of the government. Offshore, benchmark one-year dollar/yuan non-deliverable forwards (NDFs) were bid at 6.4100 late on Tuesday.