The yuan closed down slightly against the dollar on Tuesday after hitting a slew of record highs since the start of this year, with the People's Bank of China signalling it wanted to see some pullback for now. Spot yuan closed at 6.5403 against the dollar, down from Monday's close of 6.5383. The currency has appreciated 4.37 percent since it was depegged in June 2010, and 0.75 percent so far this year.
Before trading began, the PBOC fixed the yuan's mid-point at 6.5440, weaker than a record high of 6.5401 on Monday, which was the sixth straight trading day that the PBOC fixed the mid-point at all-time high. The fixing is used by the PBOC to express the government's intentions for the currency. Offshore, one-year non-deliverable forwards were bid at 6.3860 in late trade, up from 6.3740 at the previous close. Their implied yuan rise in a year's time fell to 2.47 percent compared with 2.66 percent.