China's yuan hits 14-month low, down 3pc this year

SHANGHAI: China's yuan traded at its weakest against the dollar in 14 months on Tuesday, after the central bank set a weaker official midpoint and traders say demand for dollars is on the rise.

Spot yuan traded at 6.2383 per dollar in the afternoon, its lowest level since February 2013.

The yuan has depreciated more than 3 percent versus the dollar so far this year after the People's Bank of China guided the yuan weaker to deter speculators in February and March from betting on a rising Chinese currency.

However, forex dealers and economists now say that while the PBOC has ceased intervening to push down the yuan, corporate trading is supporting the move as firms go long on dollars for use in trade and mergers and acquisitions.