China's yuan marginally lower, following central bank guidance

SHANGHAI: China's yuan weakened marginally against the dollar on Tuesday after the central bank set its guidance rate slightly lower.

The People's Bank of China set the midpoint at 6.1684 per dollar before the market opened, down 0.01 percent from the previous fix. The spot rate is allowed to trade 2 percent above or below the midpoint.

The spot market opened at 6.1441 per dollar and the yuan was changing hands at 6.1455 by midday, down 0.04 percent from the previous close.

The spread between the spot rate and midpoint has widened in recent trading days, a result of the spot market staying flat even though the bank has pushed down the midpoint rate, indicating divergence in views between the market and regulators.