Currencies
Trump Draws Red Line to Deter China From Devaluing Currency
- Trump said China puts US at disadvantage when yuan is weakened
- PBOC has been keeping yuan steady with daily reference rate
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US President Donald Trump’s comment on China’s currency policy is strengthening the case for the central bank to stick to its strategy of keeping the yuan stable, even in the face of a looming trade war.
Japan and China are putting the US at an unfair disadvantage when they weaken their currencies, Trump said Monday at the White House, spotlighting a measure analysts have said Beijing may consider to counter the impact of US tariffs. His comments may deter the People’s Bank of China from weaponizing the yuan to avoid antagonizing the US.