U.S.-China Trade War
Yuan Increasingly Weak Against the Dollar
The Chinese yuan yesterday dropped to historic lows. the equivalent of more than seven yuan to the dollar and an 11-year low. While reasons for this include the movement of assets to currencies considered safe havens (like the Japanese Yen), the Chinese central bank was criticized for letting the devaluation of its currency happen instead of stepping in, a gesture interpreted by many as a rebuttal for the new round of tariffs announced by Donald Trump late last week.
The developments point to the possibility of the beginning of a currency war between the two powers and caused stocks to tumble in many international stock markets. using the full capacity of their daily drop limit of 10 percent. 2,800 stocks closed on negative balances.
Description
This chart shows the exchange rate of the Chinese Yuan Renminbi to the U.S. dollar in 2018/2019.
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