USD/CNY rises to highest since December 19

Updated: 27 Jun. 2018 | 06:41

The Chinese Yuan is fast losing ground, has hit fresh 2018 low.
A weaker Yuan is China’s answer to Trump’s trade war.

The USD/CNY pair rose to 6.6145 today – the highest level since December 19.

The Chinese currency has been falling of late as the PBOC refrained from raising rates after Fed’s 25 basis point rate hike. Further, it cut the reserve requirement ratio for some banks on Sunday.

It appears the Chinese central bank is increasingly favoring a weaker currency as that would help the economy absorb shocks from Trump’s trade war.

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