It is pointed out in the United States that China is weaponizing the yuan exchange rate in a trade war.

In this situation, the US dollar is in sync with the yuan exchange rate against the dollar.

According to CNBC, US stocks have been affected in real time by the rise and fall of the yuan after China's "Porch", which has a yuan exchange rate of 7 yuan against the dollar.

In particular, the Standard & Poor's 500 Index moved in a way that went down as the RMB exchange rate rose against the dollar and rose as it went down.

The Trump administration suspects China is retaliating against the yuan's devaluation to reduce tariffs and boost export competitiveness.

CNBC observes that in the market's interpretation of this premise, there is a mechanism by which stock prices work together.

If the value of the yuan falls, China will neglect the decline in order to alleviate tariff strikes, which is the market's logic that provokes the Trump administration to prolong trade wars and further hurt the global economy.

President Trump warned that he would impose a 10% tariff on $ 300 billion worth of Chinese imports. China's yuan has surpassed 7 yuan per dollar in 11 years.

China stresses that the value of the yuan naturally declined in response to additional tariff warnings, but other interpretations are gaining strength.

The Chinese authorities, which had been defending the 7 yuan per dollar, which had been considered a psychological stop, have officially formulated their intention to weaponize the yuan exchange rate in a trade war, leaving the exchange rate above the 7 yuan line.

Whether China intends to attack the US stock market or not, the biggest variable in the US stock market is currently trading against the dollar.

The exchange rate against the dollar is likely to continue to rise in the future if Trump imposes additional tariffs on Chinese products, as Trump predicted.

(Photo = Getty Images Korea)