Chinese yuan is at its lowest since 2008
China has set its daily RMB reference rate at the lowest position since 2008 crisis. The forex market has been impacted by the new wave of US-China tensions.
The RMB fixing rate now stands at 7.1209 per US dollar. According to the Bloomberg survey, the average should be at about 7.122.
The offshore rate remained mostly flat on May 25. Last week it was headed for the weakest position.
The onshore RMB finished the last trading session at 7.131 per US dollar.
The new wave of anxiety on the markets is centered around Chinese politics - specifically, the latest security laws, which will, supposedly, severely limit the autonomy of Hong Kong. Protests and clashes with the police came back soon after.
The tensions became even more heated because of the US position on the issue. President Trump warned about a “very strong” retaliation. The Commerce Department already blacklisted 33 companies and organizations from China.