By Dana Sanchez
On Thursday, President Donald Trump said he would charge a 10 percent tariff on $300 billion in Chinese goods, ending a period of seemingly eased tensions between the two countries.
China promised to fight back.
On Monday, the Chinese government let its currency fall below the symbolically significant seven-per-dollar level, an apparent retaliation that moves trade tensions into another arena. This is the first time the Chinese currency breached the seven-per-dollar level since 2008, CNBC reported.
The U.S. Treasury said China is deliberately influencing the exchange rate between the yuan and the U.S. dollar to gain unfair competitive advantage in international trade.
The U.S. accused China of being a currency manipulator. China’s central bank rejected the label, saying it was the accusation that’s to blame for “seriously” undermining the international financial order and risking further market turmoil.
The S&P is down 5.8 percent in the last week and 10-year Treasury bonds yielded 1.72 percent at Monday’s close, down from 2.06 percent a week earlier, a sign that investors now think weaker Click here to read entire article