The onshore yuan weakened past 7.30 per US dollar to its weakest level since 2007, prompting the People's Bank of China to lean against the move with stronger fixings and large state-bank dollar sales.
The decline reflected a widening US-China interest-rate gap, as the Federal Reserve held policy rates near multi-decade highs while Chinese policymakers eased to support a softer post-COVID recovery.
Officials warned against "one-way bets" on the currency and adjusted the foreign-exchange risk reserve ratio for currency forwards to discourage speculative positioning.
Stabilisation efforts succeeded in limiting overshoot, although exporters and trade-flow data continued to influence sentiment around the official daily reference rate.