The Chinese yuan fell to the lowest level in six months today amid worsening trade tensions between the United States and China, which led to risk aversion on the Forex market.
Washington announced restrictions of Chinese investment in US in addition to the previously announced tariffs on Chinese goods — a move that will likely prompt a retaliation from the word’s second biggest economy. In the wake of worsening trade tensions, the People’s Bank of China reduced the reserve requirement ratios for some banks by 50 basis points. That boosted liquidity by 700 billion yuan (approximately $108 billion).
USD/CNY rose 0.5% to 6.5379 as of 12:05 GMT today.
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