Chinese yuan weakens against USD after 11-day rise

The central parity rate of the Chinese currency weakened against the U.S. dollar two days in a row after a relaxation of controls on capital outflows, ending a record 11-day rise.

China is pursuing a prudent and neutral monetary policy in 2017, applying a full range of policy instruments to maintain basic stability and liquidity, and hold interest rates at an appropriate level.

In China's spot foreign exchange market, the yuan is allowed to rise or fall by 2% from the central parity rate each trading day.

The dollar index, which tracks the greenback against a basket of six major currencies, was nearly two-thirds of a percent higher on Tuesday.

For more on this, the Beijing Hour's Shane Bigham spoke earlier with Cao Can, CRI's financial analyst.