© Reuters. Yuan was under pressure on Thursday
Investing.com – The Chinese yuan was under pressure on Thursday as investors remained anxious about the country’s economic outlook amid the uncertainty with the U.S. on trade issues.
The pair was trading at 6.6159 by 12:58AM (04:58 GMT), 0.2% higher than the previous late session close.
The yuan has slid in each of the past six trading days, taking it to the lowest levels since December 2017.
The White House announced on Wednesday that it would not be looking to impose the new 25% new limits on Chinese ownership in U.S. tech-related companies, asreports had suggested earlier in the week. Instead, the government would rely on the newly strengthened Committee on Foreign Investment in the United States, or CFIUS, to deal with concerns.
However, U.S. President Donald Trump’s top economic adviser Larry Kudlow said on Wednesday that the president is not retreating on China.
Meanwhile, a Chinese government-backed think tank has warned of a potential “financial panic” in a leaked report.
The National Institution for Finance & Development (NIFD) of China said leveraged share buying have now reached levels that was seen in 2015 when a market crash erased $5 trillion of value.
“We think China is currently very likely to see a financial panic,” NIFD said in the study, which appeared briefly on the internet before being removed. “Preventing its occurrence and spread should be the top priority for our financial and macroeconomic regulators over the next few years.”
Deutsche Bank currency strategist Alan Ruskin said it’s not clear if the decline is over. “Let’s see how it trades over the next 24 hours,” he said.
The , which tracks the greenback against a basket of currencies, was unchanged at 95.02.
Elsewhere, the pair slipped 0.07% to 110.20 as markets remained cautious about the Trump administration’s announcement of seemingly less harsh measures on Chinese investments.
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