China's yuan sinks to 10-year low against dollar

October 29, 2018 - 6:34 am

BEIJING (AP) — China's yuan has sunk to a 10-year low against the dollar, coming close to breaking the politically sensitive level of seven to the U.S. currency.

The yuan declined to 6.9644 per dollar at midday on Monday, passing its most recent low in 2016, before recovering slightly. It was 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. But they are trying to make the state-controlled exchange rate more responsive to market forces, which are pushing the yuan lower.

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