LONDON: China’s yuan fell to an 11-year low in the onshore market and a record low offshore on Monday after the latest escalation in the US-China trade war rattled investor confidence.
President Donald Trump announced an additional 5 per cent duty on $550 billion in targeted Chinese goods on Friday, hours after Beijing unveiled retaliatory tariffs on $75 billion worth of US products, sending stocks into a tailspin and investors rushing for the safety of bond markets.
In China’s onshore market, the yuan fell to 7.1500 per dollar, the lowest since February 2008. In the offshore market, the yuan slid to as low as 7.187 yuan, the weakest since international trading in the currency began in 2010, before recovering to 7.1624 yuan after Trump’s upbeat comments on a trade deal.
In a sign that some calm had returned to markets, the Japanese yen — which investors regard as a safe-haven — fell 0.4 per cent to 105.76, having earlier hit a new seven-month high of 104.46 on Monday. — Reuters
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