Caixin
Sep 18, 2018 06:27 PM
DAILY CHART

Chart of the Day: Yuan’s Slide Against U.S. Dollar

The yuan has lost more than 8% of its value against the U.S. dollar since mid-March amid the escalating trade war between the world’s two largest economies and slower economic growth at home.

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Graphic: Gao Baiyu/Caixin

The central parity rate of the Chinese yuan weakened by 45 pips to 6.8554 against the U.S. dollar on Tuesday after the Trump administration’s announcement of another 10% tariff on $200 billion worth of Chinese goods, according to the China Foreign Exchange Trade System.

Tuesday’s rate marks an 8.5% drop in value since March 22, when it was 6.317 yuan against the dollar. That was the date that the Trump administration first made clear its intention to punish China with tariffs for what it called unfair trade practices related to “the forced transfer of American technology and intellectual property.”

The yuan’s central parity rate is based on a weighted average of prices offered by market-makers before the opening of the interbank market each business day.

Contact reporter Charlotte Yang (yutingyang@caixin.com)

Read more about the China-U.S. Trade War.

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