Shanghai (AFP)
The yuan was off sharply lower on Monday, touching its lows for more than 11 years against the dollar, against the backdrop of the outbreak of the trade war between China and the United States.
At 10:15 am Shanghai time (02H15 GMT), the Chinese currency was trading at 7.1449 per dollar, down 0.69% from Friday's close. This is its lowest level since the first quarter of 2008.
The stall came as China announced Friday night that it would raise tariffs on US products worth $ 75 billion in annual imports.
Washington responded immediately by announcing stronger increases in tariffs that are expected to come into effect in September and December.
President Donald Trump has also paralyzed the American business community by telling them to stop doing business with China.
Beijing's currency had already fallen sharply in early August shortly after Trump's announcement of an extension of punitive tariffs on Chinese products to almost all of Beijing's trade.
As the yuan is not freely convertible but tightly controlled by the Chinese government, Washington has officially accused Beijing of "manipulating" its currency in order to support its exports.
China and the United States have been engaged for more than a year in a trade showdown that has resulted in the reciprocal imposition of punitive tariffs on more than $ 360 billion in annual trade.
© 2019 AFP