(Yicai Global) June 28 -- The yuan's central parity rate against the dollar fell for the seventh straight day this morning as the People's Bank of China continues to devalue the currency.

The central bank nudged the rate down to 6.5960, 391 pips lower than yesterday to mark the largest rate of decline since December 2017. The bank sets the parity rate on the morning of each business day, and spot rates may deviate 2 percent above or below the figure.

The offshore yuan, which is not controlled by PBOC, stood at 6.6238 as of 3.15 p.m. Beijing time, depreciating 58 pips from yesterday's close.

The yuan has been volatile in both directions this year and has depreciated since mid-April when the dollar index began to rise, analysts said. Escalating trade frictions between China and the United States, along with short-term disturbances in the foreign exchange market, have exacerbated the yuan's decline somewhat, they added.

Editor: James Boynton