HONG KONG- China’s yuan languished near a two-week low against the dollar on Wednesday, pressured by concerns over the economic impact of US tariffs and the threat of more duties on Chinese goods.
The yuan was 0.07 percent lower at 7.2643 to the dollar, its weakest level since March 10.
The offshore yuan traded at 7.2712 yuan per dollar down about 0.06 percent in Asian trade.
Markets remain on tenterhooks as they look ahead to next week, when US President Donald Trump is expected to announce more tariffs targeting auto and chips industries.
China’s economic growth is likely to moderate in the second quarter as the US tariff impact deepens and the effect of the current stimulus fades, said Ju Wang, head of FX and rates strategy for Greater China at BNP Paribas, in a note to clients.
The People’s Bank of China earlier this week said that it will issue 450 billion yuan of one-year medium-term lending facility, which will alleviate the local banks’ funding pressures slightly, she added.
