Yuan falls to 4-year low in Wednesday trading

The yuan fell to 6.451 per US dollar in China Wednesday, its lowest level since August 2011, and the currency fared worse in international trade, touching 6.59 to the dollar, Reuters reported. The currency has lost 3.5% against the dollar in China in the last two days, and around 4.8% in global markets after the People’s Bank of China changed the way it calculates the reference rate around which the yuan is allowed to trade in a 2-percentage point band. After the yuan slid further in early in Wednesday, trade currency dealers said Chinese state-owned banks were seen selling dollars on behalf of the PBOC to restrain the yuan’s fall.