Reuters Poll: U.S. And China Dig In On Trade War

By investing.com

 

Chinese authorities will maintain their tight grip on the yuan and allow it to weaken further against the dollar to fight an ongoing trade war with Washington and a slowing domestic economy, a Reuters poll of strategists showed.

In response to U.S. tariffs on $30 billion of Chinese imports that came into effect this week, the People's Bank of China set its yuan mid-point at an 11-1/2-year low versus the dollar.

That follows a decision last month to let the currency slip past the 7-per-dollar rate, a barrier few expected to be breached, reinforcing the view it will be a drawn-out battle. The PBOC allows the yuan to trade in a 2% range around a mid-point it fixes against the dollar each day. Read more on Investing.com

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