Chinese monetary authorities let the yuan slide past the key 7-per-dollar level so that markets could finally factor in concerns around the Sino-U.S. trade war and weakening economic growth, three people with knowledge of the discussions said today.
The yuan tumbled 1.4% and past 7-per-dollar level for the first time in more than a decade today, following two days of weaker-than-expected midpoint settings by the People’s Bank of China.
Those fixings on Friday and today followed U.S. President Donald Trump's announcement that he will impose 10% tariffs on the remaining $300 billion of Chinese imports from Sept. 1, abruptly breaking a brief month-long ceasefire in a long-running trade war.
"We have had serious internal discussions, including issues such as the timing of the announcement, how to guide the market, and made some arrangements on such issues," a policy source told Reuters.
"The regulators had a half-resisting, half-allowing idea for the yuan to fall past 7 to the dollar." ...
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https://www.reuters.com/article/us-china-mark...s/china-yuan... * * *
