The Chinese yuan closed onshore trading at a three-and-a-half month high on broad dollar weakness on Tuesday. The yuan breached the psychologically important 6.5 per dollar level at the onshore market and ended Tuesday's day session at 6.4967. That's 402 basis points higher than the Friday night fix of 6.5369. China's central bank set the midpoint rate at 6.5079 per dollar prior to the market opening. The setting was 0.4 percent firmer than the previous fix of 6.5342 on Friday, reflecting a weaker dollar. The dollar slipped to its lowest level in more than three months on skepticism that the U.S. tax plan will stimulate economic growth.