Central bank has rallied state banks to defend the currency, urging them to be prepared to sell dollars in offshore markets to stem the yuan's descent

PBOC warns against gambling after onshore yuan finishes at 7.2458 per dollar, weakest close since January 2008, while the offshore yuan slumped 1.15% on the day to trade at 7.2635.

Over the past week, traders have seen the pound crash to an all-time low, intervention by Japan to prop up the yen for the first time in 24 years, and the euro plunge below dollar parity.

Japanese authorities appear ready to respond to speculative currency moves – days after Tokyo spent an estimated $25 billion to defend the yen in the foreign exchange market.

IDFC First Bank says the rupee could hit 82.50 to the dollar by March as the dollar is likely to stay strong, while India's trade deficit is expected to widen

The PBOC said that on Wednesday it will raise the forex risk reserves for financial institutions when they buy forex through currency forwards to 20% from the current zero.

Many analysts believe things are set to get worse as tighter monetary policy across the globe raises the risks of a worldwide recession

Currency traders said the currency swap deal with the National Pension Service would remove a big source of dollar demand and could help bolster the weakening currency

The intervention came after the Bank of Japan stuck with its ultra-low rate policy, which prompted a drop in the yen past 145 per dollar to a 24-year low.

A feeble yen is less of a benefit for Japan’s manufacturers than it used to be as companies have moved production and supply chains overseas

Japanese government sells dollars to stem sharp recent falls in the yen - their first intervention in the foreign exchange market since 1998

Bearish bets on most Asian currencies rose to record highs, driven by a towering dollar and mounting pressure on the Chinese yuan, which has slipped to a 27-month low