Chinese yuan weakens to 6.8108 against USD Tuesday

The central parity rate of the Chinese currency renminbi, or the yuan, weakened 20 pips to 6.8108 against the U.S. dollar Tuesday, according to the China Foreign Exchange Trade System.

In China’s spot foreign exchange market, the yuan is allowed to rise or fall by 2 percent from the central parity rate each trading day.

The central parity rate of the yuan against the U.S. dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.

U.S. stocks posted solid gains on Monday on easing geopolitical tensions in the Middle East and a frenzy in key tech shares.

The Dow Jones Industrial Average rose 0.92 percent to 51,671.03. The S and P 500 added 1.65 percent to 7,554.29. The Nasdaq Composite Index increased by 3.07 percent to 26,683.94.

Seven of the 11 primary S and P 500 sectors closed higher, led by technology and communication services, which advanced 3.39 percent and 2.42 percent, respectively. Energy and real estate led the laggards, declining 3.58 percent and 0.9 percent, respectively.

U.S. President Donald Trump said Monday that a memorandum of understanding aiming to end the war in the Middle East had already been signed electronically by the United States and Iran.

Oil prices fell sharply on Monday. West Texas Intermediate crude for July delivery dropped 4.13 U.S. dollars, or 4.87 percent, to settle at 80.75 dollars per barrel. Brent crude for August delivery decreased 4.16 dollars, or 4.76 percent, to settle at 83.17 dollars per barrel on the London ICE Futures Exchange.

In corporate developments, Fox Corporation tumbled 15.22 percent on Monday after the media company announced a 22-billion-dollar deal to acquire streaming platform Roku. Roku was down nearly 2 percent, pulling back from last Friday’s strong gains.

Wall Street carried positive momentum into the week following SpaceX’s blockbuster public debut on Friday. Shares of the Elon Musk-led company rose nearly another 20 percent on Monday.

Looking ahead, the U.S. Federal Reserve’s policy decision on Wednesday is a major focus. With recent hot inflation readings fueling debate over potential rate hikes, traders are pricing in a more than 98 percent probability that the central bank will hold rates steady, according to the CME FedWatch Tool.