The Chinese yuan continues to trade bearish after the re-escalation of the trade war between US and China, a day after the US accused China of manipulating its currency to maintain its trade dominance. At the time of writing, USD/CNH is trading at around 7, after having recovered slightly from an all-time low.

Yesterday, global financial markets were severely impacted by the yuan falling below the key level at 7 against the US dollar. For now, investors wait to see how much weaker the currency would get before the Chinese government and PBOC step in to prevent further decline.

According to the US Treasury Secretary, Steven Mnuchin, the US government is planning to approach the IMF against China’s attempts to manipulate the yuan for a competitive advantage.