The RMB exchange rate against the USD fell below 6.5

The RMB fell to a five-year low against the U.S. dollar on Monday after statistics indicated weaker-than-expected Chinese economic growth momentum in December.

The People's Bank of China, the central bank, cut its daily reference rate by 0.15 percent to 6.5032 yuan to the dollar, the weakest level since May 2011.

Offshore, the currency's spot rate on the Hong Kong foreign exchange market fell to 6.6108 to the dollar at one stage.

Paul Mackel, global head of emerging markets foreign exchange strategy at HSBC Holdings, predicted that the renminbi will fall further in 2016 to about 6.70 to the dollar by the end of the year.

"In the near-term, there could be stronger U.S. dollar demand against the renminbi, as the latter's depreciation expectations will remain," he said.

In December, the renminbi lost nearly 2 percent against the dollar.

The fall came as China's top foreign exchange regulator said it would further reduce intervention after the renminbi's inclusion in the International Monetary Fund's Special Drawing Rights basket, making it a global reserve currency.