China’s currency sank to a six-year low against the U.S. dollar on Thursday as investors weighed what a Donald Trump presidency could mean for trade between the world’s two largest economies.
On the campaign trail, Trump talked tough about China, accusing it of “raping” the U.S. through trade and manipulating its currency, the yuan.
“The underlying threat of protectionism from the new U.S. administration will weigh negatively on trade-focused currencies in Asia like the yuan,” said Stephen Innes, a senior trader at online broker Oanda.
One dollar now buys around 6.8 yuan, the weakest the Chinese currency has been since September 2010. It’s fallen around 4.5% against the dollar so far this year after dropping a similar amount in 2015.