Chinese Shares Open Lower; Yuan Weakens

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

The Shenzhen Component Index opened 0.21 per cent lower at 7,134.15 points, Xinhua news agency reported.

Meanwhile, the central parity rate of the Chinese currency renminbi, or the yuan, weakened 149.00 basis points to 6.8631 against the US dollar, according to the China Foreign Exchange Trade System.

FILE – Chinese 100 yuan banknotes are seen on a counter of a branch of a commercial bank in Beijing, China, March 30, 2016. -VOA

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

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The central parity rate of the yuan against the US dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.  (IANS)