China stabilizes its currency but tensions with US remain high

China exports rise despite ongoing trade row with US

US Dollar (USD), Chinese Yuan (CNY) Stronger On Central Bank Currency Fix

The escalating U.S. -China trade war is adding to economic headwinds and hurting business sentiment.

Beijing on Monday allowed the yuan to sink below seven to the dollar - a key psychological threshold - but then intervened to halt the decline.

The yuan on Friday was trading 0.1% lower at 7.05 a dollar.

He also said the USA will not do business with Chinese tech titan Huawei, despite earlier pledges to allow American firms to file for waivers from national security restrictions on the company's operations. A weaker yuan can help neutralize US tariffs on Chinese goods by making them more price competitive on global markets.

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Au prochain tour, l'Italien affrontera le N.2 mondial, Rafael Nadal , tombeur jeudi de l'Argentin Guido Pella. Belle victoire aussi pour Karen Khachanov face à l'Allemand Alexander Zverev en deux sets secs.


The US acknowledged this move of China as currency manipulation and the allegation of US administration on China of being a currency manipulator has made the things worse for this ongoing trade war. The whole set of events has renewed round of trade angst.

According to the latest updates in the United States, the stocks bounce back after the significant fall. The next round of talks is scheduled for September in Washington.

The central bank has assured companies it will not permit sharp declines to continue and the exchange rate will be kept stable.

Tao Wang, an analyst at UBS bank, said in a report that the bank sees "an increasing risk to a delay or cancellation of the planned trade talks" because of the recent escalation in tensions between the two sides.

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The countries have imposed tariffs on US$360 billion in two-way trade, and with the new round announced by Mr Trump all Chinese goods would be subject to punishing duties.

The ruling Communist Party's main newspaper accused Washington of "deliberately destroying the rules-based global order" and jeopardizing economic cooperation. China's latest move came in retaliation to Trump's announcement that he would implement more taxes on Chinese imports to the US.

On Thursday, the 8th of August 2019, American dollar inched higher and Chinese Yuan rebounded from a decade low figure after People's Bank of China (China's Central Bank) had fixed midpoint for Yuan at a much-stronger level than anticipated. The central bank can buy or sell currency - or order commercial banks to do so - to keep the yuan's price from swinging too widely.

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