The question of how far and quickly the yuan will fall depends on Beijing's resolve in countering Donald Trump's tariffs with stimulus measures.
Beijing contends with a weakening yuan while awaiting policy clues from the incoming Donald Trump's administration.
The tone in global stocks turned weaker on Friday as Asian shares tracked overnight losses on Wall Street, even as bond yields slid amid a revival in bets that the Federal Reserve will cut interest rates in June.
The unexpected action is intended to tamp down a potential bubble in the bond market fueled by investors shunning riskier assets like stocks and real estate.
China has ramped up its support for the yuan with tweaks to its capital controls and a vow to crack down on market disruption, after the currency dropped close to a record low against the dollar in offshore trading.
BEIJING: China’s consumer inflation weakened further toward zero, decelerating for a fourth straight month in a setback for government efforts to stamp out deflation and revive demand by injecting stimulus into the economy.