Yuan set lower 5 days in a row

The central bank set the mid-point of the yuan's exchange rate lower against the dollar for a fifth consecutive day yesterday, stoking expectations for more fluctuations in the yuan's exchange rate.

The yuan's central parity rate stood at 6.8501 against the dollar yesterday. Its traded peak came on July 17, when it was 6.8103 against the dollar.

Last week the yuan registered the largest weekly loss - 257 basis points - since the July 2005 exchange rate reform, which freed the yuan from a dollar peg and allowed it to float within managed bands.