Chinese Yuan Falls To Near 3-month Low Against U.S. Dollar

The Chinese yuan weakened against the U.S. dollar in the Asian session on Wednesday.

In the economic news, data from HSBC Bank showed that the services sector in China expanded at a slightly faster rate in November, with a PMI score of 53.0. That's up fractionally from 52.9 in October, and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.

The composite index, which also factors in manufacturing data, also continued to expansion in November - albeit at a slower pace, falling to 51.1 from 51.7 in October.

Against the greenback, the yuan fell to nearly a 3-month low of 6.1540 from an early high of 6.1326. At yesterday's close, the yuan was trading at 6.1495 against the greenback.

If the yuan extends its downtrend, it is likely to find support around the 6.16 area.

The People Bank of China set today's central parity rate for yuan at 6.1376 per dollar, compared to Tuesday's reference rate of 6.1325. The central bank sets the reference rate every morning and allows the currency to move upto 2 percent from that level.