(Yicai Global) Jan. 28 -- The People's Bank of China softened the yuan by 180 basis points against the US dollar this morning, fixing the central parity rate at 6.4845, after its US counterpart kept the federal funds rate unchanged yesterday.

The onshore yuan market opened 229 basis points lower at 6.4900 a dollar this morning, as the greenback rallied after the Federal Reserve's meeting.

The Federal Reserve kept the target for the federal funds rate at a range of zero to 0.25 percent, in line with the market expectations. The central bank will maintain an accommodative monetary policy stance until certain economic goals are fulfilled, according to its statement.

The China Foreign Exchange Trade System, the interbank trading and foreign exchange division under the central bank, sets the benchmark on the morning of each business day. Spot rates may deviate 2 percent above or below the figure.

Editor: Emmi Laine