The Chinese yuan, also known as the renminbi, is already convertible under the current account - the broadest measure of trade in goods and services. However, the capital account, which covers portfolio investment and borrowing, is still closely managed by Beijing because of worries about abrupt capital flows.

Onshore yuan traded in Shanghai at 6.6527 to the US dollar by 4pm, down 0.22 per cent. Offshore yuan traded in Hong Kong was quoted at 6.6660 to the greenback, weaker by 0.14 per cent. Photo: Bloomberg

Yuan, Asian currencies fall after North Korean missile launch

The Chinese yuan and other Asian currencies fell on Wednesday, amid escalating geopolitical tensions over the North Korean missile launch – an act which Japanese prime minister Shinzo Abe described as “unforgivable conduct.”