The yuan continues to fall, the lowest against the dollar since a year

The yuan continued to weaken Friday against the dollar, investors ignoring the words of US President Donald Trump who was alarmed by the "fall" of the Chinese currency, in full Sino-American trade war.

The Chinese currency, fallen to its lowest levels for a year, fell Friday morning to 6.7943 yuan to the dollar, in down 0.28% from yesterday, before recovering slightly. In the face of the euro, Mao Tse-tung's currency fell by 0.75% to 7.9173 yuan.

This drop offers "a significant compensation to Chinese exporters for their loss of competitiveness linked to the rise in US tariffs, "noted Rajiv Biswas, economist at IHS Markit.

The United States imposed on July 6 tariffs of 25% on Chinese products corresponding to 34 billion dollars of annual imports. China responded by targeting the same amount of US imports. But Washington now threatens to hit $ 200 billion of Chinese imports from September.

Breaking with tradition, the US president also denounced Thursday the monetary policy of the Federal Reserve, saying it led to a rise in the harmful dollar for US exporters, especially in the face of a "free fall" yuan. These remarks caused a temporary decline of the dollar against the yuan.

The yuan has lost nearly 10% of its value since April.

The currency of Beijing is not fully convertible and the bank China's central station sets a daily fluctuation range of 2% around a central rate. This rate was set Friday at 6.7671 for a dollar, a decline of nearly 1% from the previous day.

This is the largest daily decline in the central rate for two years, saying to badysts that Beijing seems to be satisfied at the moment of the slide of the yuan and refrains from intervening on the foreign exchange market by selling the dollar.

"The fixing (of the central rate) illustrates the increased tolerance of the central bank the weak yuan, "said Ken Cheung of Mizuho Bank in Hong Kong.

But in the longer term," a sharp and rapid decline could lead to capital outflows and threaten stability China may soon intervene verbally "in favor of its currency," he told Bloomberg News.