Investing.com - China's yuan fell on Wednesday to its lowest since the 2010 opening of its offshore market, extending a slide that has unnerved global financial markets.
Big global banks forecast a 7 to 10 percent weakening of the yuan over the next 12 months, but it has begun the year with a decline of almost 2.5% in just three days. That almost matches August's one-off devaluation, which led to a global stock market selloff.
After the People's Bank of China again fixed its onshore rates for the yuan lower, the offshore rates for the currency fell more than 1% against the dollar to a record low of 6.7315.
Traders and economists fear the yuan's depreciation may mean the world's second-biggest economy is even weaker than had been expected and that it could trigger another wave of competitive devaluations around Asia and in other key economies.