(Yicai Global) Aug. 6 -- The People's Bank of China weakened the yuan by 458 basis points against the dollar this morning, fixing the central parity rate at 6.9683, which was 669 basis points lower than yesterday's market close price of 7.0352.

A lower rate signals a stronger yuan. The onshore yuan to dollar rate broke 7/1 yesterday for the first time since 2008, as did the offshore rate. This mark has always been a key psychological 'tipping-point' for investors.

The China Foreign Exchange Trade System, the interbank trading and foreign exchange division under the central bank, sets the benchmark on the morning of each business day. Spot rates may fluctuate 2 percent above or below this figure.

Editor: Ben Armour