China's strength is exhausted due to America's 125% tariff, Yuan reaches its lowest level in 18 years

Yuan Falls to 2007 Lows: The US-China trade war had a very bad effect on the currency market. China seems to be losing its strength due to this move of the US.

Yuan Falls to 2007 Lows: In the midst of the global tariff war, on one hand, US President Donald Trump imposed a tariff of only 10% on the rest of the world by putting a brake on tariffs for 90 days, while on the other hand, he increased the tariff on China from 104% to 125%. This trade war between the US and China had a very bad effect on the currency market. China seems to be losing its breath due to this move of America. China's currency Yuan reached its lowest level in 17 years on Wednesday.

The yuan fell to 7.3498 against the dollar, its biggest fall since December 2007. Sources familiar with the matter told news agency Reuters that China's top leaders plan to hold a meeting on the issue as soon as possible, so that the next steps can be taken to boost the economy and capital market.

A source familiar with the matter further told Reuters that despite the tariff pressure from the US, China's central bank will not let its currency Yuan fall so much. In such a situation, all the government banks of the country have been asked to minimize the purchase of US dollars.

Chinese experts said that unless the US rolls back the high-rate tariffs, it would mean China's exports to the US would be halved. This would have a direct impact on China's GDP unless China's exports are diverted to another country. Earlier, in the previous session, the yuan fell 1% to a record low of 7.4288 in the Asian market.

Meanwhile, the US stock market was thrilled after the US announced a 90-day tariff break on the rest of the world except China. According to a Bloomberg report, the S&P closed at a high of 9.5 percent while the Nasdaq climbed 12% to gain 100 points. Along with this, the Dow Jones Industrial Average saw a jump of about 7.9 percent. About 30 billion shares were traded in a day, which is a record figure for a day.

PC:ABPNews