The Chinese yuan experienced significant depreciation against the U.S. dollar, reaching its weakest level since November. The offshore yuan weakened by over 200 pips to 7.24, while the onshore yuan also saw a decline of 200 pips. This movement breached a closely watched technical level, marking the yuan's fall to its weakest point in four months. The yuan further slipped to 7.25, edging closer to previous lows of 7.336. Reports indicate that China's major state-owned banks were seen selling dollars for yuan in the onshore FX market in an attempt to slow the yuan's decline. Additionally, the USDCNH currency pair saw its biggest move since August 2023, with a +0.61% change, while the USD/CNY pair increased by 0.36%. This comes amid a backdrop of competitive devaluations in the region, with the Swiss National Bank cutting rates to weaken their currency, and concerns over the yen's weakness. Speculations arise on whether China is preparing for a yuan devaluation, as the People's Bank of China (PBOC) pushed the renminbi below a key support level.