It's about time the yuan started to head back up against the dollar. After all, things don't look that bad for China's economy, some analysts say.
The Chinese currency weakened to around 6.26 per dollar this week – its lowest level in about a month. The yuan, also known as the renminbi, has been falling steadily since early February and is down just over three percent so far in 2013 making it one of the worst performing emerging market currencies.
Analysts say the move makes sense in the context of recent weak data and a push by Beijing to introduce more volatility into the currency and ward off speculators just betting on yuan strength.
But they add that weakness in China's economy, the world's second biggest, may be overstated and that means a turnaround in the currency could be on the cards.
"We've had a squeeze in dollar/yuan and I think we should see a bit more of a squeeze to around 6.28, 6.30," Jesper Bargmann, head of trading markets, Singapore at Nordea, told CNBC on Thursday.