File Photo: A worker counts Chinese currency renminbi banknotes at a bank in Tancheng County of Linyi City, east China's Shandong Province, April 11, 2013. Photo:Xinhua

 The yuan hit a record low on Thursday, dropping to 7.1964 against the dollar amid risk-aversion market sentiment as Canada announced the ruling of Meng Wanzhou, CFO of Huawei. 

The yuan plunged below 7.19 to the dollar on Wednesday, dropping 500 basis points in the day. Both onshore and offshore exchange rates fell to their lowest points in almost nine months. 

The yuan has been depreciating since May. The offshore yuan's exchange rate against the greenback hit 7.1964 on Thursday from 7.0873 on May 3. 

The risk-aversion sentiment in the market is the most significant depreciation pressure on the yuan, especially during uncertainties in global economics and politics. The consequent appreciation of the US dollar is also pushing the yuan down. 

According to a report by Huatai Securities, other uncertainties, including the development of the COVID-19 pandemic and the reopening of the US and European economies, have encouraged the US dollar to increase in value.