Trump fuels currency war fears with Federal Reserve criticism – business live

All the day’s economic and financial news, as the US president gives markets something new to worry about

Trump’s intervention raises the dangers of a full-blown currency war, says Jasper Lawler of London Capital Group.

He says China’s response – letting the yuan weaken sharply – is significant.

As Trump moaned about the strength of the dollar, the PBOC devalued the yuan by the most since 2016, sending a chill through the markets.

Interpreted as China’s response to the US trade war – the starting of a currency war- risk off is prevailing with traders selling out of equities sending Asian markets and European futures sharply lower. It was only a month ago when China denied that they would start a currency war following Trump’s action. A lot can change in a month under Trump.

Donald Trump’s criticism of the Fed came after the US dollar hit a one-year high against a basket of other major currencies.

Trump singled out China for particular criticism last night, saying it was letting the yuan drop “like a rock”.

So he won’t be pleased by Beijing’s response – the People’s Bank of China let the yuan hit a new one-year low today, fixing the currency at 6.7671 per dollar.

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

“I don’t really — I am not happy about it.”

“I don’t like all of this work that we’re putting into the economy and then I see rates going up.”

Financial markets across the globe whipsawed on Trump’s comments.

The dollar index, which tracks the dollar’s performance against a basket of six other currencies, fell from a one-year high and traded just below breakeven. U.S. equities edged off their session lows, but remained lower on the day.

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