The central parity rate of the Chinese currency renminbi, or the yuan, weakened 93 basis points to 6.9125 against the U.S. dollar Thursday, according to the China Foreign Exchange Trade System (CFETS).
It is yuan's third consecutive daily weakening in response to a stronger U.S. 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 opinions about the yuan's trend since February," it said, citing improved Chinese economic data, increased flexibility in the yuan's movement and reduced expectations for the yuan's depreciation.
The CFETS noted that the yuan's exchange rate would become more flexible in future, in line with international market movements as well as supply and demand of currency.
"The sound fundamentals and positive changes in China's economy will continue to keep the yuan basically stable at a reasonable and balanced level," the CFETS said, while warning of uncertainties from U.S. policies and unforeseeable political or economic events.
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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