China's currency fell to a near 11-month low against the dollar Wednesday, after the Trump administration fired off a new list of tariffs on $200 billion in Chinese goods.

China's currency has been sliding noticeably since mid-June after bumping around at higher levels from February through May. Since June 14, it has lost about 4 percent. China's currency has been a sore point for a number of U.S. administrations, which have blasted China for allowing the renminbi to weaken to help exports.

With the escalating trade war, market speculation points to the possibility that China will now use a weaker currency to fight the effect of tariffs.

"They are perfectly okay with an orderly depreciation here," said Jens Nordvig, CEO of Exante Data. "I don't think they want to be seen as pushing it actively, but allowing it to move, not stepping in like they did in the past, is a quiet endorsement."

The yuan, also called the renminbi, was at 6.67 per dollar Wednesday, falling about 0.6 percent. Last week, it hit a low of 6.72 percent. Nordvig said he does not expect it to reach a much lower level.

"I think when we get to 6.70/6.80, that's the top of the range we've defined," he said. "I think 2, 3, 4 percent lower. That would be commensurate with the trade shock we've seen," he said.

UBS Global Wealth Management also said Wednesday that the Chinese currency could weaken to 6.8 yuan per dollar.