Renminbi Chinese reaches the minimum level of 18 years, as it becomes a point of flashing a trade war

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Chinese Renmenbi achieved its lowest level in 18 years on Thursday, as the currency became a dangerous flash point in the trade tensions between the United States and China.

Renminbi wild, which is trading in the division set by the Chinese authorities that border daily to 2 percent in both cases, fell on Thursday to its weakest level since 2007 against the dollar at 7.351 yuan before recovery.

the Popular Bank of China It was allowed for six consecutive sessions to twice the official “installation” rate of the wild currency, indicating that she is ready to allow modest consumption to rid an introductory blow to its exporters.

The move comes after US Treasury Secretary, Scott Payette, urged China on Wednesday not to reduce the value of its currency and called it weaker Renminbi “A tax on the rest of the world.”

The market pressure is escalated for the weakest renminbi. Ranebi, abroad, who is trading freely, has achieved its lowest level ever of 7 yuan against the dollar after President Donald Trump’s tariff.

Hong Kong dollars have risen this week to the strongest against the US currency since 2021, an indication of capital flows from China to the shares listed in the city.

Tensions between the United States and China increased after Trump announced on Wednesday a temporary stop of 90 days on a mutual tariff for countries that did not decrease against American drawings, which limits them to 10 percent, with that China raised to 125 percent.

The move prompted concerns about the clash of the currency between Beijing and Washington that could raise a dangerous escalation in global trade tensions, as other countries are under pressure.

Persons familiar with the currency management in China did this, saying that the authorities were not planning for a decrease in the value of the shock, which could destabilize the markets and lead to a capital journey while also hitting the local economy.

The decrease in the daily installation by PBOC was relatively small since Trump announced last week a 10 percent global tariff, indicating that the authorities run Renminbi because they are subjected to market pressure instead of preparing for currency wars.

He told one of the traders of foreign exchange at a Chinese bank receiving orders from PBOC to buy or sell dollars in order to defend the Renminbi for the Financial Times that the authorities’ goal is to “control the pace of consumption” with less aggressive intervention.

“Our basic case is that it will reduce an organized value of its control,” said Canary Singh, head of the Asian Cross Asset Strategy in Barclays.

“In a row, it seems that the reduction of the value of the currency is less likely – as China is implementing more trading in the administration now as well as trade with the United States, and Beijing is unlikely to destabilize the (Asian) commercial partners,” said Edward Evans, the manager of the emerging stock portfolio in Ashtour.

Additional reports by Joseph Cotrell in London