Rumors that China's currency suffered from a steep decline on Tuesday have been circulated across social media; however, CNBC clarified that China's yuan did not suffer a sharp fall.

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According to Quartz, the USD/CNY exchange rate was quoted at 7.48 on XE.com for a few hours on Monday afternoon, but at around 6 p.m. EST, it has already recovered to 6.88. However, Google's exchange rate stayed at the same level on Monday evening.

The rumored currency drop of the Chinese yuan overnight indicated that Chinese yuan plummeted at about 10 percent against the dollar.

However, Asia Times reported that China's yuan rose sharply on Tuesday as People's Bank of China acted to break bear grip, gaining a quarter of a percentage point from its previous close to 6.8623 to the US dollar after 9:30 a.m. It was the biggest gain in a month.

Meanwhile, the data arising from the rumors in social media were not clear if it were indicating the offshore or onshore yuan. However, it could be noted that onshore currency does not trade overnight. Furthermore, China's central bank does not allow the currency to move more than 2 percent from its daily fixing in onshore trade.

As reported in CNBC, the data charts on Google and XE.com showed the short-lived blip. Google confirmed that the figure was a bug and they are fixing it. In its finance section, Google's disclaimers state that it cannot guarantee the accuracy of foreign-exchange rates and advises users to confirm rates before making transactions.

An error from London data provided by ICAP was most likely the cause of the overnight confusion. And that data provided may have been used by Google Finance and XE.com.

The apparent hiccup, on the other hand, did not appear to affect currency trading on Tuesday. The People's Bank of China set the yuan midpoint at 6.8575 against the dollar on Tuesday, suggesting a stronger yuan compared with a fix of 6.887 on Monday.  

TagsChina's yuan, us dollar, exchange rate, china, Google Finance, People's Bank of China (PBOC)