Weaker Yuan is likely China’s answer to Trump’s trade war. The People’s Bank of China (PBOC) set the Yuan mid-point/reference rate at 6.5569 today – the weakest fix since Dec. 25, 2017. The Chinese currency has been taking a beating of late. At press time, USD/CNY is trading at 6.5830 – also the highest level since December 2017 and up 5.4 percent from the yearly low of 6.2437. The central bank announced a cut in the reserve requirement ration on Sunday – the move is seen infusing $100 billion to help the economy cope up with the pressures of a trade war with the US. Also, PBOC did not hike rates following the Fed’s 25 basis point rate hike. The resulting widening of the yield differential in the USD-positive manner seems to have put a strong bid under USD/CNY pair. It appears China is banking on a weaker Yuan to soften the blow from Trump’s trade war tactics. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next China’s Commerce Ministry: Will evaluate planned us investment curb’s impact on companies FX Street 3 years Weaker Yuan is likely China's answer to Trump's trade war. The People's Bank of China (PBOC) set the Yuan mid-point/reference rate at 6.5569 today - the weakest fix since Dec. 25, 2017. The Chinese currency has been taking a beating of late. At press time, USD/CNY is trading at 6.5830 - also the highest level since December 2017 and up 5.4 percent from the yearly low of 6.2437. The central bank announced a cut in the reserve requirement ration on Sunday - the move is seen infusing $100 billion to help the economy cope up with the pressures of… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
