The yuan closed marginally lower against the dollar on Tuesday for the fourth straight session as worries over the health of China's finance system and the economy offset a stronger official midpoint set by the central bank, traders said. Spot yuan finished at 6.1453 versus the dollar, slightly weaker than Monday's close of 6.1451 even though the People's Bank of China (PBOC) fixed its official midpoint at 6.1767, firmer than Monday's 6.1807.
Since the start of June, tight liquidity in China's money markets and the central bank's clear choice not to aid the market have sparked worries over the health of the world's second-largest economy. China's stock market has also plunged since late last week. "With the PBOC taking such a hard-line stance on liquidity, investors have become increasingly worried about the health of China's financial system as well as its economic growth," said a trader at a Chinese commercial bank in Shanghai.