The Chinese yuan was fixed at its lowest level in 6 years.
The People’s Bank of China fixed the yuan at 6.7885, its weakest since September 2010, amid worries President-elect Donald Trump could name China as a currency manipulator, according to Bloomberg.
At one point during his campaigning, Trump even suggested putting a 45% tariff on Chinese imports.
Separately, China removed its reformist finance minister earlier this week.
“Lou Jiwei’s abrupt ouster sends a strong signal that any prospects of even limited economic reforms are falling prey to President Xi’s focus on consolidating his power,” Eswar Prasad, a Cornell University professor and former China head of the International Monetary Fund, to the Wall Street Journal.
As for the rest of the world, here’s the scoreboard as of 8:00 a.m. ET:
- The US dollar index is up by 0.4% at 98.92. “The US dollar is mostly higher as the larger interest rate premium gives the greenback traction. Investors remain confident of a Fed hike next month,” wrote Marc Chandler, the global head of currency strategy at Brown Brothers Harriman.
- The New Zealand dollar, or the kiwi, is down by 0.3% at 0.7258 per US dollar after the Reserve Bank of New Zealand cut rates 25 basis points to a record low of 1.75% amid weak inflationary pressures.
- The Japanese yen is down by 1% at 106.77 per dollar, and at it weakest level since July.
- The Mexican peso is down by 2% at 20.2638 per dollar, a fresh record low.