(Yicai Global) Dec. 7 -- The Chinese yuan commenced the day slightly stronger against the US dollar today. The overnight US market rebound improved the market sentiment, and may end the redback's two-day slide against the US dollar.

The onshore yuan's spot rate opened at 6.8820, slightly stronger than 6.8837 at the official close yesterday. The offshore spot exchange rate was 6.8847 at 9.58am.

The People's Bank of China set the central parity rate between the two countries' currencies at 6.8664 today, a 65 basis points weaker for the redback than yesterday. In the domestic spot market, the yuan is allowed to rise or fall by 2 percent from the midpoint. 

The PBOC raised the central parity rate some 693 basis points in total this week, the biggest weekly gain since January.

In the first two days of this week, the yuan rose 1215 basis points against the US dollar on the onshore market, but lost a total of 436 basis points in the following two days as investors' appetite for risk-taking waned. 

Editor: Emmi Laine