U.S.-Sino Trade Worries Drag Yuan To Four Month Low – 9 May, 2019

Ahead of upcoming trade talks in Washington, Chinas yuan fell to a four month low, with uncertainty about the global economy driving the drop. Onshore yuan was 256 pips lower than the previous session of 6.7831, opening at 6.7905 and changing hands at 6.8087, with Thursdays midpoint at 6.7665, its weakest in three months. President Trump announced that he would be increasing tariffs on $200 billion worth of goods from 10 percent to 25 percent. Chinas factory-gate inflation reached a four month high, further dragging the yuan down. The offshore yuan was 0.31 percent lower than the onshore spot at 6.8315 per dollar, and the dollar index dropped to 97.615.