STI bleeds red on plunging yuan

IT WAS a bad start to the nation's birthday week for the Singapore market, as the Chinese yuan fell sharply and regional markets reacted to the US-China trade war escalation.

The Straits Times Index (STI) plunged 66.6 points, or 2.04 per cent, in Monday's trading to 3,194.51.

A day after US President Donald Trump announced new tariffs on Chinese imports, the renminbi breached a key psychological level of 7 against the US dollar, which FXTM chief market strategist Hussein Sayed thinks could hint at China's strategy for managing the tariffs' impact.