(Yicai Global) Sept. 7 -- The central parity rate of the yuan (CNY) against the US dollar (USD) declined 42 basis points today. The China Foreign Exchange Trade System (CFETS), the interbank trading and foreign exchange division of China's central bank, the People's Bank of China (PBOC), set the yuan central parity rate at 6.5269 against the dollar on Thursday, compared with the official close of 6.5246 on Wednesday.

It is likely that the exchange rate of the yuan against the dollar will break the threshold of 6.50, Chen Jianheng, fixed-income analyst at China International Capital Corporation (CICC), an investment banking firm, told Yicai Global.

Although the devaluation of the dollar early this year has affected the yuan, causing its depreciation against a basket of currencies as well as the dollar, over the past two months, the yuan has accelerated its appreciation against the greenback. Overall, since the beginning of the year, yuan has still depreciated about 0.5 percent against the CFETS basket of currencies.

In other words, the dollar index has depreciated by a total of 9.6 percent since the beginning of the year, while the yuan has appreciated by about 6 percent against the dollar, Chen pointed out.