China's Yuan Sinks to 10-Year Low Against Dollar

China's yuan sank to a 10-year low against the dollar on Monday, coming close to breaking the politically sensitive level of seven to the U.S. currency. The yuan declined to 6.9644 per dollar at midday, passing its most recent low in 2016 before recovering slightly. It was the lowest level since May 2008. The currency's weakness is one of a series of elements fueling Washington's trade complaints against Beijing. The U.S. Treasury Department declined this month to label China a currency manipulator but said it was closely watching Beijing. Chinese authorities have promised to avoid "competitive devaluation" to boost exports amid a tariff war with U.S. President Donald Trump over Beijing's technology policy. But they are trying to make the state-controlled exchange rate more responsive to market forces, which are pushing the yuan lower. The level of seven yuan to the dollar has no economic significance, but could revive U.S. attention to the exchange rate. Chinese authorities are likely to "stand their ground" and prevent a "capitulation beyond the 7 level," Mizuho Bank said in a report Monday. The yuan, also known as the renminbi, or "people's money," has declined by almost 10 percent against the dollar since April as China's economy cooled and U.S. and Chinese interest rates went in opposite directions. That helps exporters cope with tariffs of up to 25 percent imposed by Trump on billions of dollars of Chinese goods. But it raises the risk of inflaming American complaints about Beijing's trade tactics. "The last thing they will do is to escalate the tension by starting a currency war amid a trade war," Macquarie Group said in a report last week. A Treasury report on Oct. 17 said China failed to meet criteria to be labeled a currency manipulator, a status that can trigger sanctions. But... If you wish to read this full breaking news headline, plus more articles from around Thailand and Asia like, China's Yuan Sinks to 10-Year Low Against Dollar, simply click on 'Read full story' below, but 1st please give us a 'LIKE' or 'SHARE' before you leave. Thank you China's Yuan Sinks to 10-Year Low Against Dollar





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Published By: VOA NEWS - Monday, 29 October, 2018



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