Chinese Yuan Slips to 11-Year Low Against the US Dollar - Forex News by FX Leaders
USD/CNH

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

Posted Thursday, August 22, 2019 by
Arslan Butt • 1 min read

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.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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