SINGAPORE: China's currency on Wednesday (Sep 4) sank to a seven-year low against the Singapore dollar, as Sino-US trade tensions showed no sign of abating.
The yuan weakened to as low as 5.1677 against the Singapore dollar, the lowest since the Chinese currency touched 5.1701 on Sep 13, 2012.
AdvertisementAdvertisementUS President Donald Trump warned on Tuesday of a "tougher" stance on Beijing in a second term if trade talks dragged on.
After a month of escalations in the year-long battle with Beijing, Trump sent a Twitter blitz saying Chinese negotiators may be holding out for a better deal in hopes he will be voted out in next year's presidential elections.
US and Chinese negotiations are due to resume this month after a sharp deterioration in the year-long trade war in August. But Bloomberg reported on Tuesday the effort may be faltering.
Officials are having difficulty scheduling a time to meet after Washington rebuffed Beijing's demands to hold off on imposing the weekend's latest round of tariff increases, the news agency said.
AdvertisementAdvertisementChina's lead negotiator, Vice Premier Liu He, said on Tuesday that Beijing hoped to seek common ground with Washington.
"If the trade talks are going well, the renminbi will do well. If the trade talks go badly, the renminbi will fall," said a trader with a Chinese bank in Shanghai.
"It all depends on whether they (Chinese officials) will end up going to the US later in September," he added.
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