The monetary unit of the globe's second-largest economy slumped on Friday against the world's reserve currency, falling to its lowest value since April of last year against its cross-Pacific rival, according to Bloomberg.
The Chinese yuan was pinched by confidence that the People's Bank of China is set to widen the currency's trading band. Of 29 analysts and economists polled by the news source, 24 said the band will double in size by the end of the second quarter of this year.
"I think there is a good chance for spot yuan to break the 6.20 psychologically important level, and it can happen as early as next week," senior market analyst Kenix Lai with Bank of East Asia told Reuters on Friday. "Only fast depreciation of the yuan can stamp out speculative money betting on yuan appreciation."
The renminbi edged down about 0.3 percent against the U.S. dollar on Friday, which pushed its weekly losses against its peer to 0.9 percent as the month of February closes.
The yuan's weekly loss against the greenback notches its biggest one on record for the Chinese currency against the greenback, according to Reuters.
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