BusinessPostCorner.com
No Result
View All Result
Friday, July 4, 2025
  • Home
  • Business
  • Finance
  • Accounting
  • Tax
  • Management
  • Marketing
  • Crypto News
  • Human Resources
BusinessPostCorner.com
  • Home
  • Business
  • Finance
  • Accounting
  • Tax
  • Management
  • Marketing
  • Crypto News
  • Human Resources
No Result
View All Result
BusinessPostCorner.com
No Result
View All Result

China’s currency hits 16-month low on Trump tariff fears

January 8, 2025
in Finance
Reading Time: 2 mins read
A A
0
China’s currency hits 16-month low on Trump tariff fears
ShareShareShareShareShare

China’s currency has weakened to a 16-month low as the potential for sharp tariff increases from the incoming Trump administration fuels concern over growth prospects for the world’s second-largest economy.

The onshore renminbi fell 0.1 per cent to Rmb7.34 against the dollar on Wednesday, its weakest since September 2023, in spite of the People’s Bank of China’s maintenance of a steady fixing rate ahead of Donald Trump’s inauguration this month.

China’s currency is allowed to trade within 2 per cent of the daily rate set by the central bank, and the exchange rate is nearing the lower limit of that trading band.

The selling pressure partly reflects fears that the steep tariffs on Chinese products proposed by Trump would force the PBoC to weaken the renminbi to offset their impact on exports, which have helped the country maintain economic growth amid weak domestic consumer demand.

“The market is impatient and wants a blow-up in the renminbi,” said Wee Khoon Chong, a senior markets strategist at BNY.

The PBoC on Wednesday announced a daily fixing rate of Rmb7.1887 against the dollar, almost unchanged from Tuesday’s fixing of Rmb7.1879. But pressure on the exchange rate mounted after strong US economic data drove up the dollar on Tuesday.

The selling pressure on the renminbi is “essentially a reflection of the Trump trade”, said Ju Wang, head of greater China foreign exchange and rates strategy at BNP Paribas. “The market’s been doing this since the US election . . . we feel a lot has been priced in, but the market doesn’t want to give up.”

Wang said the PBoC appeared to be “in a wait-and-see mode”.

The central bank wants to maintain a steady exchange rate as it waits for more clarity on Trump’s trade policies, analysts said, adding that any slight easing of the fix could risk a larger sell-off of the Chinese currency.

Trump has said he would impose tariffs as high as 60 per cent on China.

Chinese equities also fell on Wednesday, with mainland China’s CSI 300 index shedding 0.3 per cent and Hong Kong’s Hang Seng benchmark declining 1.1 per cent.

Credit: Source link

ShareTweetSendPinShare
Previous Post

London: Wahed Invest’s adverts showing banknotes on fire banned

Next Post

Hermès boss doesn’t like the company being compared to archrival LVMH, which once tried to buy the Birkin bag maker

Next Post
Hermès boss doesn’t like the company being compared to archrival LVMH, which once tried to buy the Birkin bag maker

Hermès boss doesn’t like the company being compared to archrival LVMH, which once tried to buy the Birkin bag maker

Time to give the euro a glow-up

Time to give the euro a glow-up

June 28, 2025
House GOP can’t pass Trump’s tax bill as holdouts on center and far-right push back in late-night session

House GOP can’t pass Trump’s tax bill as holdouts on center and far-right push back in late-night session

July 3, 2025
Microsoft to cut up to 9,000 jobs as it invests in AI

Microsoft to cut up to 9,000 jobs as it invests in AI

July 2, 2025
How Privy’s former CMO learned to love low-budget, scrappy marketing

How Privy’s former CMO learned to love low-budget, scrappy marketing

June 30, 2025
Coinbase Named TIME ‘Disruptor’ as Stock Soars 42% on Crypto Policy Wins

Coinbase Named TIME ‘Disruptor’ as Stock Soars 42% on Crypto Policy Wins

June 29, 2025
Make healthy food more appealing, government tells supermarkets

Make healthy food more appealing, government tells supermarkets

June 29, 2025
BusinessPostCorner.com

BusinessPostCorner.com is an online news portal that aims to share the latest news about following topics: Accounting, Tax, Business, Finance, Crypto, Management, Human resources and Marketing. Feel free to get in touch with us!

Recent News

Home Office unaware if foreign workers leave UK after visas end, MPs say

Home Office unaware if foreign workers leave UK after visas end, MPs say

July 3, 2025
1 Billion KRW Korean Social Club ‘May Exclude People Who Made Money from Crypto’

1 Billion KRW Korean Social Club ‘May Exclude People Who Made Money from Crypto’

July 3, 2025

Our Newsletter!

Loading
  • Contact Us
  • Privacy Policy
  • Terms of Use
  • DMCA

© 2023 businesspostcorner.com - All Rights Reserved!

No Result
View All Result
  • Home
  • Business
  • Finance
  • Accounting
  • Tax
  • Management
  • Marketing
  • Crypto News
  • Human Resources

© 2023 businesspostcorner.com - All Rights Reserved!