Investing.com – The tumble fell more than 1% on Monday, falling below $ 7 per US dollar for the first time since the 2008 financial crisis, as fears of a sudden escalation in the US-China trade war triggered a sale in Asian currency markets.
The yuan fell below the $ 7 level, considered a high level of support, and fell to as low as $ 7.1097 per trade and $ 7.0424 on land.
"This may well be the biggest moment for the yuan this year. The effect of US-China trade is proving to be very large," said Masashi Hashimoto, senior currency analyst at MUFG Bank.
"Looking at the midpoint, the People's Bank of China is trying to curb the yuan's fall," he said. "The PBOC does not look like it is trying to use a weaker yuan to counter US trade pressure. to stem from panic-filled sales. "
The steep sale came after Beijing pledged on Friday to back US President Donald Trump's abrupt decision to slap 1
The weaker yuan weighed the Asian currency markets, sending 1% lower to hit a three-year low of 1,218.3, while the new one fell more than 0.5% to a two-month low of 31.61.
The escape to security lifted the yen, which often increases in times of market pressure thanks to Japan's position as the world's largest creditor. It slipped to a seven-month low of 105.78 yen, while sank to its lowest since April 2017 at 117.64 yen.
Weakness against the yen saw a fall of 0.11% to 97.74 by 2:45 AM ET (06:45 GMT) even though the greenback was up against currencies exposed to China or commodities, including the Australian dollar.
The, a floating proxy for emerging markets and China risked, fell to a healthy seven-month trough of 0.6848 after losing 1.6% last week.
This was reinforced by security demand from escalating trade tensions. Trump is also monitoring tariffs for the European Union, but will not yet make any formal announcements.
This was a push higher against the dollar of 1.1119, and expanded recovery from a two-year low of 1.1027 affected Thursday.  On Friday, the US employment data provided showed non-farm levels increased by 164,000 jobs in July, fewer than last month, and wages rose modestly.
The data cemented expectations that the Federal Reserve will cut interest rates again in September after delivering its first rate cut of more than a decade last month.
They hovered near the lowest 2017 at 1.2106, pressured by concern that the UK would leave the EU without a deal in place.
– Reuters contributed to this report
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