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China's offshore yuan tumbles past 7 per US dollar to record low

[HONG KONG] The offshore yuan sank past 7 per US dollar to a record low on Monday.

The exchange rate tumbled 0.9 per cent to 7.0383 at 9:18am after China's central bank set its daily reference rate for the onshore rate at a weaker level than 6.9 per dollar for the first time since December.

The 7-level was seen as a crucial barrier defended by the People's Bank of China, and one traders believed was key in stemming any further weakness in the Chinese currency. 

The onshore yuan slumped 0.9 per cent in mainland trading last week, its biggest loss since mid-May, after US President Donald Trump abruptly escalated the trade war with new tariffs on Chinese goods.

BLOOMBERG, REUTERS

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