China's yuan dips against dollar, downward pressure persists

China's yuan weakened against the dollar due to downward pressure and the central bank's attempts to stabilize the currency. Traders anticipate further depreciation and increased volatility. Yuan depreciation will negatively impact China's markets, but a significant drop is unlikely. The release of US inflation data may boost the dollar. The onshore yuan is trading stronger than the offshore yuan, reflecting authorities' control in the forex market. Overall, the yuan faces downward pressure in the short term.