Yuan sinks; safe haven yen strengthens

London

CHINA'S yuan fell on Wednesday to its lowest since the 2010 opening of its offshore market, extending a slide that has unnerved global financial markets and sent currency investors rushing for the security of Japan's yen.

Big global banks forecast a 7 to 10 per cent weakening of the yuan over the next 12 months, but it has begun the year with a decline of almost 2.5 per cent in just three days. That almost matches August's one-off devaluation, which led to a global stock market selloff.