China lowered yuan midpoint to curb sharp losses by slowing economy

China's central bank lowered its official yuan midpoint to a fresh 2-1/2-month low at 6.7614 per dollar on Tuesday, dragged by the sharp losses in the spot yuan a day earlier. Tuesday's midpoint was 270 pips, or 0.4 per cent, weaker than the previous fix of 6.7344 and was the softest since Feb. 19.

The move in the official guidance rate was also the biggest one-day weakening in percentage terms since Feb. 11. Chinese investors, caught off guard by U.S. President Donald Trump's tariff threats, dumped stocks and sold the yuan currency on Monday as a fresh deterioration in Sino-U.S. trade tensions roiled Asian financial markets.