The central parity rate of the Chinese currency renminbi, or the yuan, weakened 167 basis points to 6.8957 against the U.S. dollar Tuesday, according to the China Foreign Exchange Trade System.

The fixing was the weakest since January 17.

China on Sunday set its 2017 GDP growth target at around 6.5 percent, the lowest in a quarter of a century, not much lower than last year's range of 6.5 percent to 7 percent. Economists said the move indicates more energy will be channelled into reform.

Global investors opened the trading week almost certain that the Federal Reserve will raise U.S. interest rates next week. Fed Chair Janet Yellen on Friday all but confirmed market expectations, barring any sharp deterioration in economic conditions.

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.