(Yicai Global) July 19 -- China's yuan fell to the lowest point since last July against the US dollar this morning, with the offshore parity rate falling to 6.7639 at around 9.45 a.m. Beijing time.

The central parity against the greenback weakened by 152 basis points today to 6.7066, hitting a record low not seen since last August, following a six-day losing streak. On the onshore market, the yuan nudged down from the opening price of 6.7193 to 6.7310, also representing a one-year low.

The yuan has weakened sharply amid the strong rally of the greenback. So far this month, the Chinese central bank governor Yi Gang, vice governor Pan Gongsheng and chairman of the China Banking and Insurance Regulatory Commission, Guo Shuqing, have all publicly expressed confidence in the currency to shore up exchange rates, noting that economic fundamentals are improving in China and there is no basis for significant devaluation of the yuan. China does not plan to devalue its currency to gain competitiveness in the export market, they added.

The US Federal Reserve's expected continued interest rate hikes are a key factor in the depreciation, analysts believe. Jerome Powell, chair of Fed said earlier this week that hikes would continue given the high employment rate to deliver on inflationary targets. The dollar index rose above the 95 mark following the comment, and the yuan was among the first to take a hit.

Another factor is China's economic data so far this year, which has been mediocre, fueling expectations that the government will loosen monetary policy. Many believe that the Chinese central bank may cut the reserve requirement ratio again in the future.

Growth of China's gross domestic product flattened out at 6.8 percent in the first half of the year, while it edged down to 6.7 percent in the second quarter, which explains the buildup of expectations of a more accommodative monetary policy.

Editor: William Clegg