China's yuan CNY=CFXS dipped to a six-year low against the dollar on Monday, breaching a key psychological threshold after a week-long national holiday that saw offshore-traded yuan CNH= slump to nine-month lows.
The fall in the value of the Chinese currency comes after the central bank announced late last week that its foreign exchange reserves dropped for a third month in September, by more than expected, suggesting fresh capital outflows from the world's second-largest economy.
Pressure has also risen on the yuan as the U.S. dollar has strengthened in global markets, most recently on the back of strong labor market data that supports a possible U.S. interest rate hike later this year.
