The Communist Party’s main newspaper accused Washington of “deliberately destroying the rules-based international order” and jeopardizing economic cooperation.
The yuan declined to 7.0562 to the U.S. dollar before strengthening to 7.0297 in the afternoon. That came a day after Beijing sent financial markets tumbling by allowing the currency to fall to an 11-year low, breaking through the politically sensitive level of seven to the dollar.
The Chinese central bank denied improperly manipulating the exchange rate. It said the yuan’s decline was driven by market forces. American officials complain that a weak yuan — also known as the renminbi, or “people’s money” — makes China’s export prices unfairly low, hurting foreign competitors and swelling Beijing’s trade surplus.
“Equities are slumping. They will slump more,” Rabobank’s Michael Every said in a report. “Worry about global trade flows, as a stronger USD rumbles through the real economy and U.S.-China divorce smashes supply chains.” The People’s Bank of China sets the exchange rate each morning and allows the yuan to fluctuate by 2% against the dollar during the day. The central bank can buy or sell currency — or order commercial banks to do so — to dampen price movements.On Tuesday, the yuan’s starting exchange rate was set at 6.9683. That would allow the currency to weaken to as much as 7.100 while staying within the 2% trading band.
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Philippines' Duterte plans China visit to discuss South China Sea rulingPhilippine President Rodrigo Duterte will soon meet his Chinese counterpart Xi J...
Read more »
China Box Office: ‘Nezha’ Is 10th-Highest Grosser Ever in China After Two WeekendsChinese animation “Nezha” has proven itself China’s surprise hit of the summer, and is on track outstrip “Avengers: Endgame” to become China’s third highest-ever grossing film. It continued to smas…
Read more »
Stocks slide amid US-China trade war escalationWe're watching markets slide amid escalations in the the US-China trade war. The S&P 500 is having its worst day of the year and the Dow and Nasdaq are both down more than 3%. Watch live on Facebook:
Read more »
Dow tumbles over 800 points as U.S.-China trade fight intensifiesStocks trade sharply lower, with Wall Street joining a global equity selloff after China allowed its currency to fall to a more-than-10-year low versus the...
Read more »