China's yuan is facing renewed downward pressure, dragged lower by a surging U.S. dollar, a hawkish Federal Reserve and widening monetary policy divergence between the world's two largest economies. The yuan has lost about 4 per cent to the dollar since mid-August to weaken past the psychologically important 7 per dollar level. The local currency also looks set for the biggest annual loss since 1994, when China unified official and market exchange rates. The rapid yuan declines prompted the People's Bank of China (PBOC) to lower the amount of foreign exchange financial institutions must hold as reserves to rein in ... (full story)