China's central bank eased the yuan's mid-point rate against the US dollar on Monday on the back of a rising outlook for the American currency.

The People's Bank of China set the yuan's fixing at 6.6908 per dollar, 224 basis points weaker than the previous session. The weakening was the largest in two weeks. Analysts say the US Federal Reserve's recent hawkish comments have put the dollar in a strong position, pressing the yuan's move.

The analysts also said the yuan's forex rate may see higher volatility for the time being and there is no basis to firm the rate.