The Chinese yuan fell to its lowest level against the world's reserve currency since April 2013 as confidence waned for the currency's prospects, according to Bloomberg.
The central bank of the Asian nation doubled the trade limit as the trade week began. Now standing at 2 percent, the move comes as China works to reverse a slowdown of the world's second-biggest economy. China is aiming to reach a growth rate of 7.5 percent, which would be the slowest expansion since 1990. The U.S. economy is the globe's largest.
"With the expansion of the trading band, greater uncertainty will be introduced for market participants," states a Sunday note penned by currency strategist Sacha Tihanyi with Scotiabank in Hong Kong, according to Bloomberg. "A more volatile exchange rate and higher fixing tendency could indeed incent hot money outflows if onshore policy makers are not careful with how they transmit their renminbi-valuation notions to markets."
The top loss for the renminbi on Monday against the greenback totaled 0.51 percent.
The PBOC is aiming to allow markets increased capacities to develop the national economy, according to Reuters.
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