The Thomson Reuters/HKEX Global CNH index, which tracks the offshore yuan against a basket of currencies on a daily basis, stood at 96.94, weaker than the previous day's 97.01.
The Bank of Canada is seeing evidence of investor activity in some Canadian housing markets and is concerned that "fear of missing out" may also be driving price gains, Deputy Governor Toni Gravelle told Reuters on Tuesday.
Policymakers have also expressed concern about strength in the euro, although a recent weakening of the currency has lowered expectations about major policy changes.
"In general, we believe the yuan will remains strong against the dollar this year, but the size of appreciation won't be as huge as last year," Wang said.
Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate at 6.4754 per dollar, 41 pips or 0.06% softer than the previous fix of 6.4713, and the weakest since Jan. 28.
The Thomson Reuters/HKEX Global CNH index, which tracks the offshore yuan against a basket of currencies on a daily basis, stood at 96.8, weakening from the previous day's 96.85.
Traders said the yuan and the dollar index remained range-bound for the time being, but the dollar could strengthen as the implementation of US stimulus boosts activity in the world's largest economy.
8 US gross domestic product data is due later on Thursday to gauge the strength of the world's largest economy as it struggles with the coronavirus pandemic.