US designates China a currency manipulator, escalating trade war
THE United States as formally designated China a currency manipulator, after the Chinese central bank sent the yuan south in retaliation of new US tariffs, reports Bloomberg
THE United States as formally designated China a currency manipulator, after the Chinese central bank sent the yuan south in retaliation of new US tariffs, reports Bloomberg.
The move roiled markets, with S&P 500 Index futures sliding more than one per cent in Asia. The yuan slid further in offshore trading.
The US announcement followed a declaration by China's central bank chief Yi Gang that his nation wouldn't use the yuan as a tool to deal with trade disputes.
'I am fully confident that the yuan will remain a strong currency in spite of recent fluctuations amid external uncertainties,' Mr Yi said.
Treasury Secretary Steven Mnuchin will now engage with the International Monetary Fund to eliminate the unfair competitive advantage created by China's latest actions,. the department said.
President Donald Tump called the yuan's plunge below the symbolically important level of seven per dollar 'currency manipulation' in a tweet. And he indicated he'd like the Federal Reserve to counter the move.