Chinese Yuan Falls Below 7 Against the US Dollar Over Rising Trade Tensions

USD/CNY has broken the key level at 7 as the trade conflict between the US and China escalates again

Written by: Arslan Butt • Monday, August 5, 2019 • 1 min read

• Last updated: Thursday, August 8, 2019

USD/CNH has broken the key level at 7 for the first time in over a decade as the trade conflict between the US and China escalates again, after Trump’s latest round of tariff hikes. At the time of writing, USD/CNH is trading at 7.075.

An unexpected tariff hike announcement on Thursday after the in-person talks held in Shanghai saw investors rush towards safe haven assets, weakening major global currencies as a result. This has also caused the major support level at 7 to fall away in the case of USD/CNH.

Panic selling has generated a sudden fall in the Chinese yuan, making it decline to an 11-month low. How will the PBOC step in and stop the yuan from weakening further?

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.