On Tuesday, China's decision to cut interest rates for the first time in 10 months to boost the slowing economic recovery led to the yuan slipping towards a seven-month low.
The one-year and five-year loan prime rates (LPR) were lowered by 10 basis points, resulting in the onshore trade yuan falling 0.2% to 7.1803 per dollar, close to last week's seven-month low of 7.1819.
Meanwhile, the Swedish crown also weakened against the euro to its lowest level since 2009 due to ongoing concerns about the real estate sector, with the euro-swedish crown cross currency pair continuing its sharp rally.
The Australian dollar also fell as much as 0.8% to $0.6855 after the Reserve Bank of Australia's latest policy meeting minutes revealed that the decision to raise interest rates in June was "finely balanced." However, the euro rose 0.1% to $1.0936, supported by a still-hawkish European Central Bank, while sterling remained largely unchanged ahead of the Bank of England's interest rate decision on Thursday.
The U.S. dollar rose to a seven-month peak of 142.26 yen.
