The Chinese currency, or the yuan, on Tuesday gained 56 basis points to 6.5929 per U.S. dollar from Monday, according to the China Foreign Exchange Trading System.

China's central bank announced on June 19 last year that it would further reform the yuan exchange rate formation mechanism to improve its flexibility.

On China's foreign exchange spot market, the yuan can rise or fall 0.5 percent from the central parity rate each trading day.

The central parity rate of the RMB against the U.S. dollar is based on a weighted average of prices before the opening of the market each business day.