The yuan extended its losses on Monday to hit a monthly low against the US dollar and has now fallen for four days in a row following central bank weakening of its mid-price. Offshore yuan in Hong Kong traded at 6.5130 to the US dollar at 12.15pm on Monday, 0.12 per cent or 80 basis points weaker than on Friday. Onshore yuan in Shanghai traded at 6.5048 to the US dollar at the same time, 0.07 per cent or 48 basis points weaker than on Friday. The People’s Bank of China set the yuan reference point against the US dollar at 6.5120, which was 222 basis points or 0.34 per cent weaker than on Friday and the weakest level since March 28. Traders are allowed to trade up to 2 per cent either side of the reference point for the day. Stephen Innes, senior trader at OANDA Asia Pacific said concerns were being voiced about China’s domestic equity markets, after the PBOC hinted that less stimulus would be forthcoming. “This week there is a very heavy, central-bank-dominated calendar with the US Fed, Reserve Bank of New Zealand and Bank of Japan all in action,” Innes said. “While most of the focus will centre on possible policy action from the BoJ, traders will be looking for forward guidance from both the Fed and RBNZ.” He predicted “another very bumpy ride this week”. Linus Yip, chief strategist at First Shanghai Securities, said he expected a generally stable mainland China currency because he did not expect an interest rate increase would be announced in the United States this week, but agreed that a temporarily bumpy ride was unavoidable.