The loom of a recession looks very real with the Chinese yuan sinking to its lowest point in 11 years. The onshore yuan fell to 7.1487 to the US dollar, its weakest point since early 2008, in Asian trading.
This has caused global tensions to further intensify over China's trade war with US and a potential recession weighing on the markets.
The rate has steadily been set as weaker by the People's Bank of China in the recent weeks.
Besides this, US and China raising tariffs on each other's imports, and President Trump has called on US businesses to pull out of China.
The yuan is not freely convertible and the Chinese government limits its movement against the dollar to a two percent range on either side of a figure that the central bank sets each day to reflect market trends and control volatility.
Last week when the yuan dropped to the below 7 mark, President Trump called China a currency manipulator. Depreciation of the yuan makes Chinese exports cheaper and offsets some of the burden of punitive US tariffs.
China's central bank has "resolutely opposed" the label of currency manipulator.
