LONDON, Feb 29 (Reuters) - The Chinese yuan fell to a three-week low against the U.S. dollar on Monday after the People's Bank of China cut reserve requirements for most big banks in a bid to bolster flagging growth in the world's second largest economy.
Onshore and offshore rates for the yuan weakened to 6.5539 CNH= and 6.5555 per dollar respectively, the worst since the middle of the Lunar New Year holiday in early February.
The Australian dollar jumped to a day's high of $0.7168 AUD= . The Aussie is seen as a more liquid proxy for investments in China and it gained along with hopes that the rate cut would help growth and economic sentiment.