China lets currency weaken below key level amid growing trade war with U.S.


China's central bank, the People's Bank of China, allowed the yuan to breach the psychologically important rate of 7 to the U.S. dollar on Monday, pushing the Chinese currency to its weakest level in a decade, The New York Times reports. The People's Bank of China, which tightly controls the value of the yuan (or renminbi), cited "unilateralism and trade protectionism measures and the imposition of increased tariffs on China," but said currencies fluctuate and the renminbi is stable.
Worries about the ongoing U.S.-China trade war sent U.S. stock futures plunging early Monday morning. Futures for the Dow Jones Industrial Average dropped more than 300 points, or 1.2 percent, MarketWatch reports. Futures for the Nasdaq and S&P 500 were down 1.7 percent and 1.3 percent, respectively. Last week, President Trump surprised Wall Street by announcing additional 10 percent tariffs on $300 billion of Chinese goods, set to take effect in September.
China's currency news is "fueling concern Beijing might use its currency as a weapon in the tariff war," Fox Business reports.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
Labubu: the 'creepy' dolls sparking brawls in the shops
Craze for the pint-sized soft toys has reached fever pitch among devotees
-
The top period dramas to stream now
The Week Recommends Heaving bosoms and billowing shirts are standard fare in these historical TV classics
-
Women need more pain management during gynecological procedures
Under the radar Pain should no longer be ignored
-
Crypto firm Coinbase hacked, faces SEC scrutiny
Speed Read The Securities and Exchange Commission has also been investigating whether Coinbase misstated its user numbers in past disclosures
-
Starbucks baristas strike over dress code
speed read The new uniform 'puts the burden on baristas' to buy new clothes, said a Starbucks Workers United union delegate
-
Warren Buffet announces surprise retirement
speed read At the annual meeting of Berkshire Hathaway, the billionaire investor named Vice Chairman Greg Abel his replacement
-
Trump calls Amazon's Bezos over tariff display
Speed Read The president was not happy with reports that Amazon would list the added cost from tariffs alongside product prices
-
Why does the US need China's rare earth metals?
Today's Big Question Beijing has a 'near monopoly' on tech's raw materials
-
Who would win in a China-US trade war?
Today's Big Question Tariff pain will be higher for China but Beijing is betting it can weather the storm
-
Markets notch worst quarter in years as new tariffs loom
Speed Read The S&P 500 is on track for its worst month since 2022 as investors brace for Trump's tariffs
-
Trump's plan to rebuild American shipping faces rough waters
Talking Points Fees on China-made ships could disrupt trade