Yesterday the People's Bank of China set the mid-rate for the onshore yuan (CNY) much weaker than expected:
This is viewed as approval from the PBOC for markets selling off the yuan. It also fits with PBOC moves to provide further support to the economy, on the basis that a weaker yuan is positive for China's exports.
(As an aside there is vigorous debate amongst Japanese authorities of the costs vs. benefits of a rapidly falling yen but that's a story for another post).
CNY vs. USD has hit a six month low.
The chart below is of offshore yan (CNH), it does not have e trading limits like CNY does:
