Chinese Yuan Falls On Trump Tariff Threats
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(RTTNews) - The Chinese yuan weakened against the U.S. dollar in the European session on Tuesday, amid concerns about possible tariffs on Chinese imports by U.S. President-Elect Donald Trump.
Markets are nervous as they seek clarity on U.S. President-elect Donald Trump's policy proposals, including increased tariffs, and await key U.S. inflation reading later in the week for directional cues.
Against the U.S. dollar, the yuan fell to nearly a 3-1/2-month low of 7.2417 from early high of 7.2180. At yesterday's close, the yuan was trading at 7.2139 against the greenback.
If the yuan extends its downtrend, it is likely to find support around the 7.23 region.
The Chinese central bank sets central parity rate every morning and allows the yuan to fluctuate up to 2 percent from that level.
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