The People’s Bank of China (PBOC) has opened the doors for further Yuan (CNY) depreciation should export and overall economic growth weaken more due to higher tariffs and ongoing trade tensions with the US. The central bank, however, will be very cautious managing the pace of depreciation and avoid triggering large capital outflows, according to analysts at Goldman Sachs.
China’s Yuan fell below 7 per US Dollar last week, triggering a sell-off in most Asian currencies except Japan’s Yen.
The pair is currently trading at 7.0612, the highest level since March 2008.
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