Spot yuan closed slightly lower against the dollar on Tuesday after the Chinese central bank set the yuan's mid-point at a one-month low and the United States said it sought more progress on yuan appreciation. The United States welcomed the rise in the yuan's exchange rate in recent years but would like China to let the yuan rise further, visiting Commerce Secretary Gary Locke said on Tuesday.
"The central bank has said they would keep the yuan stable more than once, so the news has little impact on yuan appreciation," said a dealer at a European bank in Shanghai. Indeed, the People's Bank of China vice-governor Yi Gang said in a reiteration of official policy late on Monday that China would keep the yuan exchange rate basically stable. Spot yuan closed at 6.8296 on Tuesday, slightly weaker than Monday's close of 6.8278.