HONG KONG- China’s yuan slipped against the US dollar on Thursday as investors remain cautious amid uncertainty over US tariffs and broader economic policies under the Trump administration.
The yuan was 0.15 percent down at 7.2690 to the dollar after trading in a range of 7.2590 to 7.2699, having earlier hit lowest level in one week.
Its offshore counterpart traded at 7.2749, down about 0.11 percent in Asian trade.
Sentiment over the Chinese currency continues to be undermined by the uncertainty surrounding US President Donald Trump’s tariffs threats.
“The potential risk of the US imposing additional tariffs on China remains a major risk factor for the renminbi (yuan) exchange rate, it is possible the tariff risks will further intensify,” said Ming Ming, chief economist at CITIC Securities.
Prior to the market opening, the People’s Bank of China set the midpoint rate around which the yuan is allowed to trade in a 2 percent band, at 7.1740 per dollar, its weakest since January 20 and 821 pips firmer than a Reuters’ estimate.
