The yuan extended its recent losses on Wednesday, diving to a fresh eight-year low after China’s central bank cut the reference rate for the ninth consecutive trading day.
Both offshore and onshore yuan were trading below 6.86, a level regarded by officials and analysts as psychologically important.
Offshore yuan traded in Hong Kong weakened for a third consecutive day, but expanded its decline in the afternoon trading, down 0.14 per cent, or 97 basis points, to 6.8808 as of 4.45pm, after earlier slipping to 6.8843, the lowest level since the offshore market was launched in 2010.
Onshore yuan traded in Shanghai slumped for a fifth straight day, giving up 0.22 per cent, or 149 basis points, to trade at 6.8705 per dollar, the lowest level since late 2008.
Onshore yuan has weakened 1.4 per cent, or about 1,000 basis points, in the previous five trading days.
China’s central bank on Wednesday set the daily fixing 97 basis points, or 0.14 per cent, weaker at 6.8592, the lowest level in more than eight years. Trading is allowed up to 2 per cent either side of the reference point for the day.