As share markets flatlined on as uncertainty over the outlook for US interest rate cuts, the Chinese yuan's slump sapped their appetite for risk, with dealers saying state-owned banks were seen selling dollars to support the yuan.
The yuan has now weakened around 1.5 percent since US President Donald Trump threatened last Thursday to impose more tariffs on Chinese goods from September 1.
China let its yuan weaken below 7 to the dollar, an 11-year low, as the escalation in the US-China trade war shook currency markets.
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