Then came the shocker - this weekend's export figures - showing that exports slumped by 8.3% from a year ago.
That's worrying news for Chinese factories, which in turn provide jobs for millions of Chinese villagers.
Economists say the government may be trying to avoid job losses at these factories by weakening the yuan.
Joining the club?
The export story is just one part of it however. Analysts have also pointed to China's longer-term goal of turning the yuan into a global reserve currency.
Later this year the International Monetary Fund (IMF) is expected to announce whether or not the Chinese yuan will be allowed into the elite currency club which includes the dollar, the euro, the pound and the yen.
In the past the IMF has said that China needs to have a flexible exchange rate, so that the value of the yuan adjusts to China's growth - the way currencies do in other market-driven economies.
The devaluation could be seen as a step in the right direction, but one that may well be viewed with caution by China's trade partners who are already wary of what they see as the Chinese government's management of financial markets.