China's yuan hit a 13-month low on Friday and was set to post its biggest weekly drop after the central bank stepped up its efforts to shake out hot money from the market, although traders said there were some emerging signs it may be finding a base.
The yuan was trading at 6.2268 near midday (0400 GMT), little changed from Thursday's close at 6.2275. In chaotic early trading, it hit a low of 6.2370, the weakest since Feb. 25, 2013 and nearing the bottom of its permitted trading range.
The People's Bank of China (PBOC) set the daily midpoint of that range at 6.1475, below Thursday's fixing of 6.1460 though at the stronger end of some banks' predictions.
"The supply and demand for dollars today was relatively balanced," said a trader at a Chinese bank in Shanghai. "I think 6.25 will be the bottom of this round of depreciation and more two-way volatility will be seen this year."