CHINA/ECONOMY/TARIFFS/TRADE WAR/TRUMP AS PRESIDENT: “China’s yuan is forecast to pare some of its recent losses against the dollar over the coming year on hopes that risks from an escalating U.S.-China trade war and a deep sell-off in emerging markets will subside, a Reuters poll found. Having weakened over 6 percent so far this year, the yuan hit a 7-week low on Monday [10-8-18] after the People’s Bank of China (PBOC) loosened policy by cutting the ratio of cash that banks must hold as reserves. The PBOC’s decision was its latest move to try and bolster an economy that is feeling the heat of a tit-for-tat tariff dispute with the United States. While most strategists left their currency predictions unchanged after the PBOC cut reserve requirements, the latest 12-month yuan view was the most pessimistic forecast in Reuters polls since October last year…Trump imposed tariffs on $200 billion worth of Chinese imports last month, in addition to duties on $50 billion of goods previously announced. China has retaliated and plans for new trade talks between Beijing and Washington recently collapsed.”
–Vivek Mishra, “China’s yuan to pare losses on hopes trade risks will subside: Reuters poll,” Reuters, October 9, 2018 7:12 pm