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China's yuan falls further to US dollar amid trade war fears

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Posted at 10:44 PM, Aug 05, 2019
and last updated 2019-08-05 23:44:34-04

BEIJING (AP) — China's yuan has fallen further against the U.S. dollar amid fears about mounting economic damage from Beijing's trade war with President Donald Trump.

The yuan declined to 7.0562 to the dollar in early trading Tuesday, a day after Beijing allowed it to fall past the politically sensitive level of seven to the greenback.

The Chinese central bank says the declines are driven by market forces. But they fueled fears Beijing might use devaluation as a weapon in its fight with Trump over U.S. complaints about China's trade surplus and technology policies.

The weakness of the yuan, also known as the renminbi, or "people's money," is among U.S. grievances against Beijing. American officials complain it makes Chinese export prices unfairly low, hurting foreign competitors and swelling Beijing's trade surplus.