LONDON Feb 21 China's yuan currency
weakened to its lowest since early October in offshore trade on
Friday, falling past 6.10 yuan per dollar and bringing its
losses since Monday to more than 1 percent.
One of the safest bets for global investors in recent years
has been the steady gains for the Chinese currency, long seen as
undervalued, but indications of weaker growth in the world's
second biggest economy have underpinned a change in recent
The move on Friday was the biggest one day fall since
October 2011, Reuters data showed.
"This is one of the most crowded positions in emerging
markets, being long yuan versus the dollar," said Manik Narain,
an emerging market strategist at UBS in London.
"In the past few sessions the PBOC (China's central bank)
has been guiding the midpoint of the daily U.S. fix higher so
there has been a bit of washout of positioning. It caught a lot
of people off guard."