• Chinese yuan plunged to five year low to 6.5928 after the drop in services PMI which indicates further weakness in the growth of economy.
  
  
• "The PBoC set the Yuan reference rate at 6.5314, an effective 0.22% devaluation, following the 0.21% devaluation the previous day. The offshore Yuan dropped beyond 6.70 per dollar for the first time since Sep 2010 level. The onshore rate was 6.5560. The Yuan offshore -onshore gap widened to record high.
  
  
• The unexpected fast depreciation of renminbi is expected to destabilise the Chinese economy further. Investor's has started to sell Chinese Yuan in open market this week and 2% decline in CNY has put more pressure on EM currencies and also global stock markets.
  
  
• USD/CNY has broken 6.5900 and reached five year high. It is currently trading around 6.6819. Chinese Yuan is trading weaker and further devaluation is expected in the coming months can reach till 6.88 level.