Yuan Poised for Worst Month on Record After 7 Barrier Broken
- Trade war, slowing economy are battering China’s currency
- Yuan may drop to 7.3 a dollar in near term: Credit Agricole
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China’s yuan is headed for a record monthly plunge as an intensifying trade war with the U.S. damages investor confidence.
The currency has plummeted 3.9% this month against the dollar, the biggest loss since January 1994, when the modern exchange-rate regime was adopted. The slump past the 7 level for the first time since the financial crisis comes as China-U.S. trade tensions escalate. Fresh signs of a slowing economy and bets on further monetary easing have also helped fuel the retreat.