U.S. Intervention Odds Rise as Yuan Plunge Fuels Trump’s FX Fury
- Yuan’s drop past 7 may signal China is ready to use FX as tool
- Nomura sees 20% chance U.S. intervenes in next three months
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People’s Bank of China Governor Yi Gang says the nation won’t use exchange rates as a tool in the escalating trade dispute with the U.S. But currency strategists say the Trump administration just might take that step.
The risk of a U.S. move to weaken the dollar has climbed in the eyes of some analysts after the yuan’s plummet to a decade-low below 7 per dollar Monday prompted fresh criticism from U.S. President Donald Trump.