Yuan at Decade Low Against Euro Risks More Heat on Trade Flows

China’s yuan has slumped to the lowest in more than a decade against the euro just as President Donald Trump’s tariff deluge threatens to re-route trade flows from the world’s second-largest economy.

The managed currency fell to levels last seen in 2014 this month, having tumbled more than 8% against its European counterpart this year. The euro has received a boost from faltering investor confidence in the greenback, while the yuan has declined on expectations China will allow a managed depreciation to ease the impact of US tariffs on its economy.