Chinese Yuan Slips to 11-Year Low Against the US Dollar

On Thursday, the Chinese yuan weakened to an 11-year low against the US dollar over escalating worries of a slowdown in the economy as a...

USD/CNH

On Thursday, the Chinese yuan weakened to an 11-year low against the US dollar over escalating worries of a slowdown in the economy as a result of the trade war. At the time of writing, USD/CNH is trading at 7.085.

Rising protests in Hong Kong, coupled with the ongoing trade war with the US, have been the main drivers behind the recent slide in the yuan’s value. State-owned banks in China have stepped in to support the yuan by receiving dollar/yuan swaps in a bid to stop further decline in the currency.

On Wednesday, the IMF cautioned against economies that were intentionally keeping their currencies weak to gain a competitive edge in international trade. This statement comes a few days after the Trump administration had alleged that China was manipulating its currency, and had escalated its concerns to the IMF.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
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.

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