China’s yuan falls sharply as Donald Trump declares US election win
Exchange rate between US dollar and yuan could become a bargaining chip in negotiations between China and the US on tariffs, analyst says
China’s yuan recorded a sharp fall amid rising uncertainty as Republican candidate Donald Trump declared victory in the US presidential election.
The offshore yuan on Wednesday had at one stage dropped below the 7.19 mark, before regaining some ground.
International investor uncertainty is likely to result in a stronger US dollar, at least in the short term, said Nick Marro, principal economist for Asia at the Economist Intelligence Unit.
“The stronger-for-longer US dollar, alongside higher-for-longer US interest rates, could preserve the wide interest rate differential between the US and China, particularly as Chinese monetary settings remain accommodative,” he said.