The yuan dropped for the third straight day on Tuesday as the US dollar strengthened amid the ongoing US presidential election, but analysts said the election results will not have a major or sustained impact on the yuan's exchange rate.

They also said the dollar's strength might not continue for long, since a weak dollar will better serve US interests, helping it to boost jobs and reduce debt burdens.

The yuan's central parity rate, set by People's Bank of China, the central bank, fell by 92 base points to 6.78 against the dollar on Tuesday.