China

China is allowing the yuan to gradually weaken against major global currencies as it faces pressure from an escalating trade war with the US. The onshore yuan fell to its lowest level against the USD since the global financial crisis and hit a 15-month low against a broader currency basket. The People’s Bank of China has reduced the yuan’s daily reference rate for six consecutive sessions, signaling a controlled weakening of the currency to boost export competitiveness while avoiding market panic.