- US president says yuan fall is a ‘major violation’
- Chinese currency’s fall through key level ricochets through global markets in US-China trade war
- Asia rattled by Hong Kong protests
- UK services PMI at 9-month high; all-sector PMI shows stagnation; eurozone PMI shows economic slowdown
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.