China’s Yuan at 10-Year Low

CBJ — China’s yuan currency is now at a 10-year low against the American dollar.

The yuan declined to 6.96, putting it at the lowest level since May, 2008.

The currency’s weakness is one of a series of elements fueling Washington’s trade complaints against Beijing. The U.S. Treasury Department declined this month to label China a currency manipulator but said it was closely watching Beijing.

Chinese authorities have promised to avoid “competitive devaluation” to boost exports amid a tariff war with U.S. President Donald Trump over Beijing’s technology policy.

A lower Chinese currency could possibly encourage an outflow of capital, which would result in raising borrowing costs at a time when its leaders are trying to kick-start economic growth, which has noticeably cooled in recent months.