China State Council widens Yuan trading range

At the end of last week China's State Council announced it would allow the country's currency to trade in a wider range.

The move was part of a wider set of policy initiatives aimed at promoting trade, and signaled the Renminibi would be allowed to depreciate modestly against the Greenback, analysts at Deutsche Bank said.

As a result, they now saw the Renminbi ending at 6.3 versus the US dollar in 2015 and at 6.5 by the end of next year, versus the 6.2 for both years seen previously.

Nonetheless, the initiative was not likely to lead to double-digit depreciation and the RMB was likely to remain strong relative to many major currencies, they added.

Even so, "one wonders whether it will raise questions about this being some sort of soft entry into the global currency wars. They are clearly trying to promote exports," Deutsche Bank analyst Jim Reid told clients in a research report.