Economics
Why Yuan at Seven Would Risk Further Inflaming Trade Dispute
- China’s currency has fallen almost 3% against greenback in May
- Trump accused China of currency manipulation during election
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The yuan’s recent slide risks re-igniting one of U.S. President Donald Trump’s favorite criticisms of China: that Beijing weakens its currency to aid exporters.
While analysts say the exchange rate is being driven by souring market sentiment as China’s economy slows and the U.S. ramps up tariffs, the slide towards 7 against the dollar comes during crunch trade negotiations.