China's onshore yuan hit an 8 and a half year low on Friday to 6.8830 yuan per US dollar. The decline marks an 11-day losing streak, the longest since June 2005.

The yuan almost touched a 6.9 low during the day under the midpoint of 6.8796 yuan per dollar. The offshore yuan was also weakening.

Analysts say the US dollar is strengthening due to positive domestic economic numbers. That is considered the main reason why the yuan is weak. Reuters cited sources as saying that Chinese policymakers have been unfazed by the yuan's slide, but are ready to slow its descent due to worries about capital flight.