China's yuan weakened against the dollar on Tuesday after the central bank fixed its official midpoint weaker. The People's Bank of China set the midpoint rate at 6.3721 per dollar prior to market open, 0.07 percent weaker than the previous fix 6.3676.
The spot market opened at 6.3719 per dollar and was changing hands at 6.3731 at midday, 0.06 percent weaker than the previous close.
The offshore yuan was trading 0.52 percent weaker than the onshore spot at 6.4065 per dollar.
Offshore one-year non-deliverable forwards contracts , considered the best available proxy for forward-looking market expectations of the yuan's value, traded at 6.5855, or 3.24 percent weaker than Tuesday's midpoint.
Traders said trading had become increasingly sluggish after the PBOC strengthened its intervention in the market of late to contain the aftermath of its abrupt devaluation of the Chinese currency in mid-August.
The market had lost the interest in pricing the yuan aggressively but would rather choosing to follow the central bank's guidance.
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