The Chinese yuan has fallen to its weakest level since November 2018 against the US dollar.
The yuan is traded both in Beijing and in the offshore market, in which it moves more freely.
Amid the trade war between the United States and China, analysts have kept a close eye on the yuan. A weaker local currency would help to offset US-imposed tariffs. Chinese officials have consistently said that they wouldn’t use the yuan as a tool in the trade spat. Market experts have agreed for the most part, saying last year’s weakness in the currency was due to market forces and a selloff across emerging market currencies.
Nevertheless, today’s moves seem worth noting.
One dollar currently buys about 6.9265 yuan, edging closer to 7.000, which is a key level investors are watching. This year, the offshore yuan has slipped 0.7%, but the decline has accelerated this month, when it’s fallen 2.8%, according to Refinitiv.