LONDON, Feb 29 (Reuters) - The Chinese yuan fell to a three-week low against the U.S. dollar on Monday after the People’s Bank of China cut reserve requirements for most big banks in a bid to bolster flagging growth in the world’s second largest economy.
Onshore and offshore rates for the yuan weakened to 6.5539 and 6.5555 per dollar respectively, the worst since the middle of the Lunar New Year holiday in early February.
The Australian dollar jumped to a day’s high of $0.7168 . The Aussie is seen as a more liquid proxy for investments in China and it gained along with hopes that the rate cut would help growth and economic sentiment. (Reporting by Anirban Nag; editing by Patrick Graham)