China sets yuan mid-point at weakest level in two and a half months

[SHANGHAI] China's central bank lowered its official yuan midpoint to 6.7334 per US dollar on Monday, the weakest level in two and a half months, after US President Donald Trump threatened to increase tariffs on Chinese goods.

Monday's midpoint was 58 pips, or 0.09 per cent, weaker than the previous fix of 6.7286 and was the softest since Feb 20.

Mr Trump on Sunday increased pressure on China to reach a trade deal by announcing he will hike US tariffs on US$200 billion worth of Chinese goods this week and target hundreds of billions more soon.

The move marked a major escalation in trade tensions between the world's two largest economies and a shift in tone from Trump, who cited progress in talks as recently as Friday.

REUTERS