This comes despite efforts by the People’s Bank of China to support the yuan, continuing today’s correction below 7.2:

• PBOC sets USD/CNY midpoint today at 7.1887 (vs estimate at 7.3435)

7.1887*1.02 means it should be at 7.3324, which it is only allowed to trade +/- 2% from the reference rate. The People’s Bank of China will intervene (so we are told) to maintain that spread.