China's yuan drops against US dollar

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The Chinese yuan weakened 22 basis points to 6.3235 against the US dollar on Thursday, according to the China Foreign Exchange Trading System.

This marks the fourth straight day of decline against the US dollar.

The yuan hit 6.2919 against the US dollar on Feb 29, a record high since the country started reforming its exchange rate formation mechanism in 2005.

In China's foreign exchange spot market, the yuan is allowed to rise or fall by 0.5 per cent from the central parity rate each trading day, Xinhua reported.

The central parity rate of the yuan against the US dollar is based on a weighted average of prices before the opening of the market each business day.