China's yuan falls after central bank move

The Chinese yuan started the week with losses after the central bank doubled the size of its trading range.

The yuan, also known as the renminbi, was trading at 6.1573 against the dollar in early trading, down 0.1% from Friday.

On Saturday, the People's Bank of China doubled the trading range of the currency.

It is now allowed to rise or fall 2% during a trading session.

Peter Esho from Invast Financial Services in Sydney explained the significance of China's move and what other factors are likely to affect the markets this week.