(VOVworld) - China's yuan dropped to its lowest level against the dollar in over four years on Friday, as the central bank steadily guides the currency lower amid an economic slowdown and hefty capital outflows.

China yuan falls to lowest rate in over 4 years (Photo: Xinhua)

The yuan fell to almost 6.5 against the dollar, its lowest level since August 2011. Earlier Friday, the People's Bank of China (PBOC) had set the mid-point for the yuan at a new four and a half year low of 6.4, down 0.2 percent from Thursday's fixing. Reuters news agency said the move evoked doubt on whether the PBOC plans to devaluate the yuan in the context of falling capital flow and the recession of the Chinese economy, which is putting pressure on the yuan. China's central bank lets the yuan spot rate rise or fall a maximum of 2 percent against the dollar relative to the official fixing rate.