China’s currency weakened to the lower End

China’s currency weakened to the lower end of its trading band against the U.S. dollar for the fourth straight session Monday, as investors appeared increasingly inclined to withdraw capital amid concerns over the economic outlook and the likelihood of a new round of monetary easing.

The move came as the People’s Bank of China set the midpoint of the daily allowed trading range for the dollar at 6.3349 yuan, a rise of 39 basis points from Friday’s setting of 6.3310 yuan, pushing the Chinese currency lower

Economist and investment adviser Marc Faber was quoted in a King World News interview as saying investors who are already pulling their funds out of China could accelerate their efforts to bunker down into safe havens such as the dollar if, as expected, China lowers interest rates and eases monetary conditions to help prop up its slowing economy.

“But if that happens, then obviously capital flight will increase, especially if, unlike all of the expectations, ... the Chinese yuan begins to weaken rather than to strengthen against the U.S. dollar. So that could actually accelerate ... capital outflows and declining asset values in China,” Faber said in an audio interview posted on the King World News web site.

In a related development, former central bank adviser Yu Yongding said Monday that China should delay new initiatives to internationalize the Chinese currency, owing to it recent fall in value, according to report of his comments published in China Business News on Monday.

Instead, Yu argued, China should add more capital-account controls to help guard against big swings in money heading into and out of the country amid global market volatility