World markets hit by sliding yuan while Italy mulls its commitment to the euro
The sliding yuan stokes trade-war fears; Italian bonds and stocks fall on renewed political concern; and the dollar is on the defensive after Trump’s comments
London — The Chinese yuan slid to its lowest in more than a year on Friday, further undermining global sentiment and stoking worries Beijing’s currency management could be the next flash point in a trade dispute with the US. The yuan slid as low as 6.8128 to the dollar in the onshore market after the central bank set a weaker fixing for the currency for the seventh straight session, forcing a volatile session in Asian stocks. After falling 0.4%, MSCI’s index of Asia-Pacific shares outside Japan ended the day 0.6% higher as the yuan rebounded. Market participants suspected state intervention to support the currency. The drop in the yuan came a day after US President Donald Trump said he was concerned that the "Chinese currency was dropping like a rock" and the strong US dollar "puts us at a disadvantage". His comments knocked the dollar, forcing it off one-year highs against a basket of currencies But the yuan, hurt by concerns over the China-US trade war and a slowing Chinese econom...
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