The renminbi weakened on Tuesday for the first time in two weeks after the central bank relaxed capital controls on Monday. Analysts said the currency will have more two-way fluctuations in coming months.

The People's Bank of China set the yuan's daily reference rate at 6.5277 per dollar on Tuesday, down by 0.43 percent from Monday. It is the first time the rate has been set lower day-on-day in 11 trading sessions and marked the sharpest downward adjustment since Jan 9.

The monetary authority allows the yuan to rise or fall by at most 2 percent on either side of the reference rate.