CHINA DEVALUATES ITS CURRENCY THE MOST SINCE AUGUST

China responded to a surge in the US dollar by weakening its currency fixing this Monday the most since the aftermath of August's devaluation.

The People's Bank of China set the reference rate 0.9 per cent weaker to 6.6375 per dollar. A gauge of the greenback's strength climbed 1.8 per cent on Friday, the most since 2011 as the UK's vote to exit the European Union spurred turmoil in global financial markets. The offshore yuan dropped 0.3 per cent at 9:20 am in Hong Kong.

"There will be further volatility to come," Khoon Goh, head of Asia research at Australia & New Zealand Banking Group in Singapore, said before the reference rate was announced. "Today's fixing will be weak, the question is how weak."