The offshore renminbi touched 6.7921 per dollar,
its weakest since October 2010, while spot yuan in the onshore
market eased after the People's Bank of China set its daily
guidance rate weaker than the previous session.
"The market is starting to get a bit nervous about further
weakness in the yuan, which could lead to greater capital
outflows," said Stephen Innes, senior FX trader for FX broker
OANDA in Singapore.
"If this continues at a pace beyond what virtually everyone
forecast, I suspect there will be a spillover to the regional
currencies," Innes said.
Singapore's dollar and South Korea's won
are seen as more vulnerable due to their lower yields and
sensitivity to China's currency policies, he added.
REUTERS
