China's yuan could weaken past 7.5 per dollar if Trump hikes tariffs further
The U.S. has for years accused China of keeping the yuan artificially low to gain advantage in trade — an issue Trump has been complaining about since he became president. Last month, Trump suggested the U.S. shouldBut by ratcheting up rhetoric and tariffs against China, Trump has caused the U.S. dollar to strengthen even more compared to the yuan and other currencies, said Taimur Baig, chief economist at Singaporean bank DBS.
"That's the irony of it all: The more grenades Donald Trump throws to give the U.S. a competitive advantage, the more risk off we see and more safe haven flows go into the U.S. and Treasury rallies and the dollar remains strong," he told CNBC's "Squawk Box" on Wednesday.could help to contain the greenback's strength, but both options "will have far less impact on the dollar than just the end of the trade war," said Baig.
"If there were some sort of resolution that the actions between the Chinese and Americans will lead to a smaller surplus between the U.S. and China, to me, that would be the most powerful driver of a weaker dollar," he said. "But that is not at all the way the narrative is playing out right now," he added. "China's move tells you that the U.S. doesn't have all the balls in this game, the Chinese can mess up this dollar weakening desire of Donald Trump very easily."
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Air China to suspend Beijing-Hawaii route flights from August 27Air China will suspend its flights on the Beijing-Hawaii route from Aug. 27 afte...
Read more »
Air China to suspend Beijing-Hawaii flights amid weak travel demandAir China will suspend its flights on the Beijing-Hawaii route from Aug. 27 afte...
Read more »
China responds to US after Treasury designates Beijing as a currency manipulatorThe response from the People's Bank of China comes at a time of rapidly intensifying tensions between the world's two largest economies.
Read more »
Philippines' Duterte plans China visit to discuss South China Sea rulingPhilippine President Rodrigo Duterte will soon meet his Chinese counterpart Xi J...
Read more »
China Box Office: ‘Nezha’ Is 10th-Highest Grosser Ever in China After Two WeekendsChinese animation “Nezha” has proven itself China’s surprise hit of the summer, and is on track outstrip “Avengers: Endgame” to become China’s third highest-ever grossing film. It continued to smas…
Read more »
Dow Falls 900 Points as Yuan Reels and Trump Jabs at ChinaStocks were pummeled by selling, pushing indexes from New York to Shanghai lower, as the yuan slid and fresh trade threats between Beijing and Washington raised fears of an economic slowdown.
Read more »