SHANGHAI: China’s yuan weakened on Monday to a more than two-month low against the dollar, underpinned by signs of strength in the US economy and rising bets that Donald Trump would win a second term as president.
The Chinese currency, which has lost about 1.6% against the dollar in October, looks set to snap three straight months of appreciation, weighed down by geopolitical uncertainty and threats of bigger trade tariffs on Chinese goods if Trump wins.
The onshore yuan was trading 0.13% lower at 7.1316 to the dollar by 0300 GMT, after hitting a trough of 7.1355, its weakest since Aug 23.
Its offshore counterpart hit a low of 7.15 to the dollar, its softest level since Aug. 19, before standing at 7.1415 by around midday.
As part of Trump’s pitch to boost American manufacturing, he has promised voters this time that he will impose tariffs of 60% or more on goods from China.
Comments
Comments are closed for this article.