The central parity rate of the Chinese currency renminbi, or the yuan, weakened 75 basis points to 6.9032 against the U.S. dollar Wednesday, according to the China Foreign Exchange Trade System.
It is yuan's second consecutive weakening in response to a stronger U.S. dollar following the Federal Reserve hinted it would raise the interest rates as soon as this month.
Fed Chair Janet Yellen on Friday signaled that an interest rate hike will likely be appropriate, if the economy progresses in line with officials' expectation.
The U.S. dollar ended higher against most major currencies on Tuesday.
The dollar index, which measures the greenback against six major peers, was up 0.17 percent at 101.810 in late trading.
In China's spot foreign exchange market, the yuan is allowed to rise or fall by 2 percent from the central parity rate each trading day.
The central parity rate of the yuan against the U.S. dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.
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