Thu Apr 10 07:40:00 UTC 2025: ## Yuan Plunges to 17-Year Low Amidst Escalating US-China Trade War

**Singapore** – The Chinese yuan fell to its lowest level against the US dollar in 17 years on Wednesday, April 9th, reaching a closing rate of 7.3498 yuan per dollar. This follows a record low for the offshore yuan the previous day. The decline comes as the US-China trade war intensifies, with new US tariffs on numerous countries, including a staggering 104% levy on some Chinese goods, taking effect on Wednesday.

While the People’s Bank of China (PBOC) is reportedly working to prevent a significant yuan devaluation – urging major state-owned banks to reduce dollar purchases – analysts remain concerned. Capital Economics warned that even if the yuan depreciates to 8 per dollar, the latest US tariff hikes could slash Chinese exports to the US by more than half in the coming years, impacting the Chinese economy more severely than previously anticipated. The report suggests China may increase fiscal support measures in response.

The offshore yuan partially recovered in Asian trading hours, appreciating by roughly 0.7% to 7.3769 per dollar after falling over 1% the previous day and hitting a record low of 7.4288. The overall situation highlights the increasing pressure on the Chinese currency amidst the escalating trade conflict.

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