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Chinese yuan slumps after Mnuchin’s remarks, PBOC rate fixing

Chinese yuan slumps after Mnuchin remarks and PBOC rate fixing

The Chinese yuan fell during Wednesday’s trading as trade deal uncertainty renewed after U.S. Treasury Secretary Steven Mnuchin's remarks on tariffs imposed on China, in addition to lending facilities provided by People's Bank of China's for short and medium-term loans.

As of 07:50 GMT, the USDCNH traded at 6.8857 after hitting a high of 6.8861, while the lowest level recorded was at 6.8857.

The onshore yuan, USDCNY, soared 0.05 percent to 6.8869 after hitting a bottom of 6.8669 the previous session, which is the lowest level in nearly six months.

According to a press report, current U.S. tariffs on Chinese goods are likely to remain in effect until after the November presidential election, despite the signing of the first phase of the trade deal.

The U.S. President Donald Trump and Chinese vice Premier Liu He are scheduled to sign the first phase of the trade deal later today at the White House.

On the other hand, China’s central bank has added 300 billion yuan through medium-term lending facilities, but it held the borrowing cost at 3.25 percent, adding some pressure on the yuan.

The dollar index consolidated at 97.10, ahead of US producer prices, manufacturing index and speeches by FOMC members Harker and Kaplan.

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