SHANGHAI: China’s yuan hit a two-week low against the dollar on Monday on growing investor concerns about trade disputes between the world’s two largest economies as the deadline for US President Donald Trump’s reciprocal tariffs approaches.
Developments in trade relations with the United States have been front and centre of investors’ minds. Trump still intends to impose new reciprocal tariffs on a number of US trading partners on April 2, the White House said last week.
However, in contrast to a volatile greenback, the yuan has been mostly stable, swinging in a narrow range of about 1% so far this month.
President Xi Jinping’s plan to make the yuan the cornerstone of China’s financial strategy has helped limit downside for the currency, while 20% tariffs under the Trump administration have capped its upside, some market watchers said.
“Beijing wants neither a strong nor weak yuan,” said Marc Chandler, chief market strategist at Bannockburn Global Forex.
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