China's Yuan fell to its four and half year low on account of weak Chinese economy and expectations of a U.S interest rate hike.
- USD/CNY has climbed up to 6.4583 this week from 6.400 which would be highest weekly depreciation since the week of surprise devaluation on Aug 11.
- The PBOC set its daily guidance rate at its weakest level since August 2011.
- "A U.S. rate hike would have a major impact on money flows out of emerging markets including Hong Kong and China," said Linus Yip, chief strategist at First Shanghai Securities.
- Technically the pair has broken 6.4485 (Oct 10th high) and is expected to reach till 6.527/6.60 level.
- The weakness can be seen only below 6.318 level.
