U.S. officials are concerned about the recent depreciation in China’s currency and plan to lay out details on China’s policies in an upcoming foreign exchange report, according to a senior U.S. Treasury official.
The official was speaking ahead of Treasury Secretary Steven Mnuchin’s participation at the IMF-World Bank meeting in Bali this week. As trade tensions have risen and China prepares to retaliate against U.S. tariffs, the yuan’s fall against the dollar has accelerated recently and is near a 21-month low. The currency was at 6.92 to the dollar, near its August low of 6.93.
Should it reach a level of 7, analysts expect more selling as that is a key technical and psychological threshold.