FTSE 100 Index, British benchmark stock market gauge, Tuesday dropped by 1.06 percent, or 71.68 points, to 6664.54, as China's currency yuan fell dramatically against U.S. dollars, weighing on the performance of miners and personal consumers shares.
According to the announcement of the People's Bank of China on Tuesday, the Chinese currency's daily central parity quotes should be based on the closing rate of the inter-bank foreign exchange rate market on the previous day, supply and demand in the market, and price movement of major currencies.
Following the improvement of quotation mechanism, the central parity of the RMB, or the yuan, retreated sharply by 1,136 basis points to 6.2298 against the U.S. dollar.
Glencore's share price decreased by 7.26 percent, topping the losers of the blue chips.
Prices of BHP Billiton, Burberry Group, Anglo American and GKN dropped by 5.00 percent, 4.42 percent, 4.16 percent and 3.70 percent respectively.
Prudential led the top gainers of the blue chips with a share price increase of 4.68 percent, followed by Coca-Cola HBC (1.51 percent), Inmarsat (0.98 percent), ARM Holdings (0.79 percent) and Ashtead Group (0.62 percent).
Trading volume in FTSE 100 companies was slightly smaller than its 30-day average. And the index has gained 3.98 percent so far this year.