1st LD-Writethru: Chinese yuan strengthens against USD Tuesday

BEIJING, March 6 (Xinhua) -- The central parity rate of the Chinese currency renminbi, or the yuan, advanced against the U.S. dollar on Tuesday after weakening on the previous trading day.

The yuan's rate appreciated by 45 basis points to 6.3386 against the U.S. dollar Tuesday, according to the China Foreign Exchange Trade System.

Analysts believe the yuan exchange rate will maintain stable in the long term despite pressure from overseas markets before the possible rate hike by the Federal Reserve this month.

China will deepen reforms to make interest and exchange rates more market-based, Premier Li Keqiang said Monday when delivering a government work report at the opening meeting of the annual parliamentary session.

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. Enditem