SHANGHAI: China’s yuan fell to its lowest level against the US dollar in more than three months on Thursday, as continued momentum from Donald Trump’s presidential election victory propelled the greenback to a one-year high against major peers.
Trump’s proposed tariffs and other policies such as tax cuts are seen as inflationary and likely to keep US interest rates relatively high, buoying the dollar and pressuring currencies of its trading partners. Prior to the market opening, the PBOC set the midpoint rate, around which the yuan is allowed to trade in a 2% band, at 7.1966 per dollar, 360 pips firmer than a Reuters estimate. Wednesday’s fix was 314 pips firmer than a Reuters estimate.
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