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