Chinese currency yuan weakens 124 basis points to 6.8526 against US dollar

Chinese stocks opened higher on Wednesday, with the benchmark Shanghai Composite Index up 0.39 per cent to open at 2,536.42 points. The Shenzhen Component Index opened 0.46 per cent higher at 7,425.63 points, Xinhua news agency reported. Meanwhile, the central parity rate of the Chinese currency renminbi, or the yuan, weakened 124 basis points to 6.8526 against the US dollar, according to the China Foreign Exchange Trade System.

In China's spot foreign exchange market, the yuan is allowed to rise or fall by 2 per cent from the central parity rate each trading day. The central parity rate of the yuan against the US dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.

(With inputs from agencies.)