(Yicai Global) Sept. 12 -- The yuan rallied against the dollar after a deep dip today.

The dollar-yuan spot exchange rate dropped 41 basis points to 6.5294 at 3.50 p.m., after declining 224 basis points to 6.5477 today in onshore markets The rate ratcheted down 4 basis points to 6.5371 after falling 151 points to 6.5518 in offshore markets.

The central parity rate of the yuan against the US dollar dropped 280 basis points before today's interbank market opening in its biggest decline since Feb. 20, ending the 11th straight day that the central parity rate had appreciated, the longest streak since 2005.

The People's Bank of China (PBOC) canceled reserve deposits that overseas yuan business participating banks saved in domestic agency banks from today and lowered the foreign exchange risk reserve ratio from 20 to 0 percent.

The move sought to stifle continued yuan appreciation and dampen corresponding expectations. The currency's robust showing last month took a bite out of exports, analysts said.