China Weakens Renminbi Amid US Trade War | JQJO

China weakened its currency, the renminbi, to its weakest level in 18 months, a response to escalating trade tensions with the US. The People's Bank of China set the fixing rate just below Rmb7.20 per dollar, the lowest since September 2023. While some analysts predict further depreciation to counter US tariffs, others believe Beijing will avoid a significant devaluation to prevent capital flight and economic instability. A gradual weakening is considered more likely than a sudden drop. Market volatility has increased, reflecting uncertainty about the renminbi's future direction.