China’s currency, the yuan, slumped on Wednesday to its lowest level against the US dollar in 17 years, as tensions between Washington and Beijing intensified.
According to Reuters, the onshore yuan closed Wednesday’s domestic trading session at 7.3498 per dollar — marking its weakest finish since December 2007.
The currency’s decline comes amid the escalating trade war between the world’s two largest economies, fuelled by fresh tariff measures.
On Wednesday, US President Donald Trump’s administration implemented sweeping new “reciprocal” tariffs targeting several countries worldwide, including hefty 104% duties on Chinese imports.
In response, Chinese officials are expected to meet in the coming days to discuss potential strategies aimed at strengthening the country’s economy and stabilising its capital markets.
Beijing had already imposed steep retaliatory tariffs on US imports following Trump’s controversial trade measures.
While Trump recently indicated that tariffs imposed on some countries might be temporarily reduced, he has pressed ahead with increased duties specifically targeting Chinese goods.
