Yuan drops again as rate adjustment continues

The value of the Chinese yuan fell by an additional 1.6 percent on Wednesday, continuing a dramatic slide prompted by the central bank's cut in the reference rate against the US dollar.

The People's Bank of China reduced the yuan's reference rate to 6.3306 yuan per dollar on Wednesday, following a reduction on Tuesday of 1.86 percent - the largest single-day drop in 21 years.

On Wednesday, the yuan's onshore trading price declined by 2 percent to a four-year low of 6.4465, according to the China Foreign Exchange Trade System.