Yuan Declines Against the Dollar

The Chinese yuan declined against the dollar for the second consecutive day on Thursday.

The People’s Bank of China’s (PBOC) reference rate reached 7.1907 yuan per dollar, up 13 pips from the previous day’s level of 7.1894 yuan, after declining by 18 pips the previous day.

Chinese rules allow the yuan to rise or fall by 2 percent from the central bank’s reference rate on each trading day in the spot foreign exchange market, according to Xinhua News Agency.

It is worth noting that the reference rate for the yuan against the dollar is determined based on the buying prices offered by major financial institutions before the start of daily interbank trading.