Trade war risks becoming a dangerous currency war as China weakens yuan the most in 2 years

as informed in On the surface, the tit-for-tat trade war between the U.S. and China appears to be turning into a currency war. Trump followed his comments with a tweet Friday morning that criticized China, Europe and others for "manipulating" their currencies. Strategists said the trade war appears to be moving toward a currency war, but whether it becomes one has yet to be seen. Trump told CNBC that trade partners are "making money easy and their currency is falling." But some market pros believe if trade wars begin to impact the economy, the Fed rate hikes will slow down.

China has its currency to use as a weapon in trade war with Trump

China's currency fell to a near 11-month low against the dollar Wednesday, after the Trump administration fired off a new list of tariffs on $200 billion in Chinese goods. China's currency has been sliding noticeably since mid-June after bumping around at higher levels from February through May. China's currency has been a sore point for a number of U.S. administrations, which have blasted China for allowing the renminbi to weaken to help exports. That would be commensurate with the trade shock we've seen," he said. UBS Global Wealth Management also said Wednesday that the Chinese currency could weaken to 6.8 yuan per dollar.

China has its currency to use as a weapon in trade war with Trump

ECB's Nowotny sees possibility of currency war

As it stated in The 4% rule for retirement savings desperately needs to be modernizedJamie Dimon was best-paid bank CEO last year — wait till you see who came in fourthShe posted a photo on Facebook moments before taking her own life — it took her family days to remove itECB's Nowotny sees possibility of currency warZURICH--A potential global trade war could also become a currency war given the rise in the value of the U.S. dollar and weakening of China's currency, European Central Bank governing council member Ewald Nowotny said Monday. "In addition to a trade war, we might have something like a currency war," even if it isn't intentional, Mr. Nowotny, who heads Austria's central bank, said at a conference in Zurich. Mr. Nowotny said the threat of persistent price declines, known as deflation, is over in Europe. Annual eurozone inflation was 2% last month, in line with the ECB's medium-term objective of below, but close to, 2%. Consumer prices "are moving in the right direction," Mr. Nowotny said.

collected by :Mathio Rix

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