SHANGHAI: China’s yuan slumped to a fresh seven-month low against the dollar on Tuesday, as the greenback strengthened following a surge in US yields, with investors now contemplating the prospect a second Donald Trump presidency.

The currency was also weighed by a broad shift in the central bank’s daily guidance that analysts say indicates authorities are willing to allow the yuan to ease further.

By 0323 GMT, the yuan was 0.04% lower at 7.2712 to the dollar after trading in a range of 7.2679 to 7.2714.

Prior to the market opening, the People’s Bank of China set the midpoint rate, around which the yuan is allowed to trade in a 2% band, at 7.1291 per dollar, its weakest since Nov. 21 and 1,483 pips firmer than a Reuters’ estimate.