8/5, 6:15 AM (Source: TeleTrader)
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Yuan falls to 11-year lows against dollar amid tariff talk

The Chinese yuan slid past the 7 mark against the greenback on Monday as the trade war between the world's two largest economies showed no signs of abating.

The offshore variant of China's currency recovered slightly from earlier losses to go for 7.0785 against the dollar at 6:10 am CET while the onshore yuan was selling for 6.942 at the same time after also having previously breached the 7 threshold, which some market players regard as a major support level. In the process, the currency fell to lows not seen since May 2008.

The drop comes after United States President Donald Trump announced that he will place a 10% tariff on the remaining $300 billion of Chinese goods from September 1. China responded by stating that it will take the "necessary countermeasures" if the US goes ahead with the imposition of new tariffs, leading to fears of an escalation in the trade war.

Breaking the News / DZ