The yuan fell the most in more than two weeks as China’s central bank lowered the currency’s daily fixing by the most in a week.
The People’s Bank of China cut the reference rate, which restricts the onshore yuan’s moves to a maximum 1 percent on either side, by 0.06 percent to 6.1373 per dollar. The yuan has risen 2.3 percent this year and touched a 20-year high of 6.0802 per dollar in Shanghai last week.
“Chinese authorities would be quite interested in trying to stabilize the currency a bit,” said Cliff Tan, East Asian head of global markets research at Bank of Tokyo-Mitsubishi UFJ Ltd. in Hong Kong. “In both onshore and offshore markets, there’s been a lot of enthusiasm for the renminbi.”