Yuan weakens against US dollar

The central parity rate of the renminbi, or the yuan, weakened 93 basis points to 6.9125 against the US dollar on Thursday, according to the China Foreign Exchange Trade System. It is the yuan’s third consecutive daily weakening in response to a stronger US dollar following the Federal Reserve hinting that it could raise interest rates as soon as this month. The yuan’s market rate against the dollar strengthened 0.13 percent in February, despite a 0.24 percent weakening in the currency’s central parity rate against the dollar, according to the CFETS. “There has been a divergence in market opinion about the yuan’s trend since February,” it said, citing improved Chinese economic data, increased flexibility in the yuan’s movement and reduced expectations of yuan depreciation.