The Chinese currency, or the yuan, on Friday weakened 103 basis points to 6.5952 per U.S. dollar from its record high Thursday, snapping a streak of three consecutive trading days of gains, according to the China Foreign Exchange Trading System.

The central parity rate of the yuan, or RMB, hit a record high of 6.5849 on Thursday.

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.