On Monday, the People’s Bank of China set the yuan’s daily fixing – also known as the midpoint rate – at 7.1980 per US dollar, the weakest since early December.
The move came amid heightened trade tensions between China and the US, set off by President Donald Trump’s announcement of heavier-than-expected tariffs last week and a proportionate response from Beijing.
“Emerging market currencies are under pressure from US tariff shocks, and today’s fixing reflects that market pressure,” said Ding Shuang, chief Greater China economist at Standard Chartered.
“Such a mild depreciation does little to offset the current tariff hike,” Ding said, adding he expects the central bank to maintain its strategy until the next round of tariffs is announced.
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World leaders react to Trump’s new tariff blitz as global trade war escalates
World leaders react to Trump’s new tariff blitz as global trade war escalates
