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Donald Trump has responded to the drop in the yuan to below seven-to-one dollar, accusing Beijing of “currency manipulation”.
China dropped the price of their currency to an almost a historic low. It’s called “currency manipulation.” Are you listening Federal Reserve? This is a major violation which will greatly weaken China over time!
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Traders are bracing for a full-blown currency war, after the People’s Bank of China allowed the yuan to drop below a level it had previously defended with sustained vigour, of seven-to-one dollar – its lowest level since May 2008. The move came after Donald Trump threatened new tariffs on Chinese imports on Friday, intensifying the trade war between the two countries.
This has led to a sharp sell-off on world stock markets, as traders worry about the consequences for the global economy.
Under the influence of factors including unilateralism, protectionist trade measures, and expectations of tariffs against China, the yuan has depreciated against the dollar today, breaking through 7 yuan per dollar.
Read More Yuan fall prompts Trump to accuse China of 'currency manipulation' – business live