The Wall Street Journal: Yuan sinks amid rising U.S.-China trade tensions

The yuan is falling again as investors grapple with fresh prospects of deteriorating trade relations between the U.S. and China.

China’s currency has pared around half the gains it garnered in a two-day rally sparked by signs of progress in trade talks at last weekend’s summit of Group of 20 leaders in Buenos Aires. The arrest this week of a top Chinese tech executive has some investors concerned that a trade truce between the U.S. and China could be more complicated to maintain than anticipated.

The yuan is down 5.5% against the dollar this year, on track for its biggest loss against the U.S. currency since 2016. One dollar recently purchased 6.88 offshore yuan CNHUSD, -0.0465%  , compared with around 6.30 this summer.

More weakness in the yuan could further complicate trade talks between the U.S. and China, analysts said, as a lower yuan makes Chinese exports more competitive abroad. President Trump has complained that China and Europe are intentionally weakening their currencies to disadvantage the U.S., and the U.S. Treasury voiced concern in October about Beijing’s currency practices, though it stopped short of labeling China a “currency manipulator.”

An expanded version of this report appears on WSJ.com.

Also popular on WSJ.com:

Meng Wanzhou, Huawei CFO and founder’s daughter, has been face of secretive company.

In Latin America, awash in crime, citizens impose their own brutal justice.

Want news about Asia delivered to your inbox? Subscribe to MarketWatch’s free Asia Daily newsletter. Sign up here.

Filed in: Top News Tags: 

You might like:

Key Words: Happy graduation! Billionaire pays off Morehouse College grads’ student-loan debt Key Words: Happy graduation! Billionaire pays off Morehouse College grads’ student-loan debt
Give this one free gift to your wife, it should transform your marriage Give this one free gift to your wife, it should transform your marriage
Love & Money: Instagram-savvy millennials humblebrag about their wealth on Bumble and Tinder Love & Money: Instagram-savvy millennials humblebrag about their wealth on Bumble and Tinder
Millennials are going on expensive ‘grief retreats’ to cope with death Millennials are going on expensive ‘grief retreats’ to cope with death
NewsWatch: What’s the main driver for the stock market: trade, earnings or the Fed? NewsWatch: What’s the main driver for the stock market: trade, earnings or the Fed?
An estimated 10.7 million Americans could miss work the Monday after the ‘Game of Thrones’ finale An estimated 10.7 million Americans could miss work the Monday after the ‘Game of Thrones’ finale
The Moneyist: My mom gave my sister $20,000 for her stem-cell treatment, I want her to deduct it from her inheritance The Moneyist: My mom gave my sister $20,000 for her stem-cell treatment, I want her to deduct it from her inheritance
The Wall Street Journal: OPEC considers two scenarios to adjust oil production The Wall Street Journal: OPEC considers two scenarios to adjust oil production

Leave a Reply

Submit Comment
© 2019 Stock Investors News. All rights reserved. XHTML / CSS Valid.