Chinese Yuan Weakens Against the US Dollar in Reaction to Recent Legislation on Hong Kong - Forex News by FX Leaders

Chinese Yuan Weakens Against the US Dollar in Reaction to Recent Legislation on Hong Kong

Posted Wednesday, October 16, 2019 by
Arslan Butt • 1 min read

Early on Wednesday, the Chinese yuan has weakened against the US dollar as the spotlight goes back on the possibility of the US-China trade war intensifying again. At the time of writing, USD/CNH is trading around 7.109.

The Chinese government is threatening countermeasures in response to a recent US legislation in support of Hong Kong protesters. The US House of Representatives passed the “Hong Kong Human Rights and Democracy Act” on Tuesday, to explore whether various government departments are interested in changing the special trading status accorded to Hong Kong in light of the recent protests raging on.

Earlier today, a spokesman from China’s Foreign Ministry reacted to this development by stating, “If the relevant bill is finally passed into law, not only will it hurt Chinese interests and China-U.S. relations, but also seriously damage U.S. interests”. This latest development has markets concerned of a possibility of derailment of progress in recent US-China trade negotiations.

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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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