Chinese Yuan Weakens Amid U.S. Tariff Warnings And Trade Tension Escalation

Benzinga

Chinese authorities are grappling with a declining yuan as major investment banks forecast the currency to hit historic lows. The offshore yuan is expected to weaken to its lowest level since 2004. U.S. President-elect Donald Trump reignited trade tensions, pledging a 10% tariff on all Chinese goods and threatening tariffs as high as 60%. The yuan depreciated by 5% during Trump's initial tariff measures in 2018, with further losses as trade disputes escalated. Economists warn of significant depreciation risks triggering capital outflows and market volatility, challenging China's efforts to stabilize its economy.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:02Chinese authorities are grappling with a declining yuan as major investment banks

00:06forecast the currency to hit historic lows. The offshore yuan is expected to weaken to

00:10its lowest level since 2004. U.S. President-elect Donald Trump reunited trade tensions, pledging a

00:1710 percent tariff on all Chinese goods and threatening tariffs as high as 60 percent.

00:22The yuan depreciated by 5 percent during Trump's initial tariff measures

00:26in 2018, with further losses as trade disputes escalated. Economists warn of significant

00:32depreciation risks triggering capital outflows and market volatility,

00:36challenging China's efforts to stabilize its economy.

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