Yuan drops 2nd day after policy adjustment

SHANGHAI/BEIJING - The yuan fell against the dollar on Tuesday, despite a jump in the reference central parity rate set by the central bank.

The People's Bank of China set the central parity rate of the yuan against the dollar at 6.798 on Tuesday, compared with 6.828 on Monday.

The Chinese currency rose by more than 0.4 percent - the biggest rise in a day since its revaluation in 2005 - on Monday, close to hitting its trading limit of 0.5 percent.