New yuan rate 'fixes distortions'

Reference point for RMB exchange vs US dollar cut 1.86% by central bank

China's central bank devaluated the yuan against the US dollar by 1.86 percent on Tuesday, the largest single-day drop since exchange rate reforms began in January 1994.

The People's Bank of China cut the reference rate against the US dollar to 6.2298 yuan per dollar, down from 6.1162 yuan a day earlier, the lowest level in more than two years.