(Yicai Global) March 22 -- The People's Bank of China weakened the yuan by 94 basis points against the dollar this morning, fixing the central parity rate at 6.6944 after bolstering the redback by 251 bips yesterday to its strongest to-the-dollar value in eight months.

The China Foreign Exchange Trade System, the interbank trading and foreign exchange division under the central bank, set the rate 67 points higher than yesterday's market-based closing price of 6.6877. A higher rate means a weaker yuan.

The CFETS sets the benchmark on the morning of each business day. Spot rates may deviate 2 percent above or below the figure.

The PBOC set the central parity rate at 6.6850 yesterday, the yuan's toughest stance against the greenback since July 17, 2018. The US Dollar Index dropped after the Federal Open Market Committee suggested the US' benchmark interest rate should not be increased for the rest of the year.

Editor: James Boynton