China lets yuan drop to five-month low on US tensions, uncertain global economic outlook

China is tolerating a gradual weakening of the yuan’s value against a basket of major currencies because of a worsening political confrontation with the United States and a challenging economic outlook, analysts said.Beijing could also allow the yuan to weaken against the US dollar if the Trump administration imposes severe sanctions on China for moving ahead with a new security law in Hong Kong.The yuan fell to 7.1778 against the US dollar at the end of May, near the rate it was trading at in…

from South China Morning Post https://www.scmp.com/economy/china-economy/article/3088083/china-lets-yuan-drop-five-month-low-us-tensions-uncertain