BEIJING, Feb. 9 (Xinhua) -- The central parity rate of the yuan, weakened 372 basis points to 6.3194 against the U.S. dollar Friday, according to the China Foreign Exchange Trade System.
The weakening came after the U.S. dollar hit two-week highs against a basket of currencies on Thursday, gaining around 1.3 percent in the past week.
A sell off across global stock markets since last Friday and bets that the United States could see at least three interest rate hikes in 2018 have driven the dollar up in recent days.
The weakening of the yuan was also a normal correction following its continued strengthening since the beginning of the year, analysts said.
The first month of 2018 saw the yuan's central parity rate gain more than 3 percent against the U.S. dollar, over half of the 5.81 percent gained for all of 2017.
Analysts predict that sound economic fundamentals will support the yuan in the long term and the rate will see more "two-way movement."
In China's spot foreign exchange market, the yuan is allowed to rise or fall by 2 percent from the central parity rate each trading day.
The central parity rate of the yuan against the U.S. dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.
