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Chinese yuan weakens to 5-year low

(Xinhua) Updated: 2016-05-30 15:24
Chinese yuan weakens to 5-year low

A residents shows China's yuan and US dollar banknotes in Qionghai, South China's Hainan province, Jan 7, 2016. [Photo/Xinhua]

BEIJING -- The central parity rate of the Chinese currency renminbi, or the yuan, weakened 294 basis points on Monday to 6.5784 against the US dollar, the lowest level since February 2011, according to the China Foreign Exchange Trading System.

The fall came after US Federal Reserve Chair Janet Yellen said at Harvard University on Friday that an interest rate hike in the next few months would probably be appropriate if economic data improves.

Her comments boosted the US dollar against other major currencies.

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.

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