Financial news

Currency War Begins: Chinese Yuan Crashes Past 7 To New Record Low

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Via Zerohedge

In a dramatically unsettling move for global stability, China’s offshore yuan just collapsed below 7/USD – plunging a stunning 12 handles to its weakest on record against the dollar.

“A break of 7 is quite shocking to the market, and close attention will be paid to how China would deal with this move,” says Tsutomu Soma, general manager of the investment trust and fixed-income securities at SBI Securities Co. in Tokyo in a phone interview

This is the weakest offshore yuan has ever been against the dollar…

Onshore Yuan also broke below 7.00…

The last time China’s yuan moved with this velocity, the tremors rippled dramatically and rapidly through the rest of global financial markets.

As we pointed out earlier…

“This week’s fixings will send very important signals on the PBOC’s stance,” said Tommy Xie, an economist at Oversea-Chinese Banking Corp. “

A rate that’s stronger than 6.9 shows China’s preference for stability, but one that’s weaker will be seen as a strong hint that more drops will be allowed.”

Kyle Bass suggests the capital exodus has only just begun…

Gold in yuan is accelerating higher…

Additionally, Bitcoin is well bid…

We suspect an angry tweet from President Trump is imminent as China ‘weaponizes’ its currency.

As Mick Jagger sang, a U.S.-China war is “just a shot away.”

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