USD/CNH rises above the symbolic level of 7.00

USD/CNH rises above 7.00 for the first time on record.
Offshore Yuan is losing ground on escalating Sino-US trade war.

Omkar Godbole FXStreet Contributor

USD/CNH jumped above 7.00 soon before press time and hit a high of 7.0436.

The offshore Yuan (CNH) is taking a beating on escalating trade tensions. The US President Trump abruptly announced on Thursday that the US will impose an additional 10% duty on Chinese goods worth $300 billion, ending the month-long trade truce.

China has vowed to fight back if the new US tariffs take effect from Sept. 1 as planned.

At press time, the USD/CNH pair is trading at 7.0290.

The slide in China's Yuan could weigh over Asian currencies and worsen the risk aversion, leading to bigger gains in the already strong safe-haven assets like gold and Japanese Yen.

As of writing, the USD/JPY pair is trading at 106.03, representing 0.50% losses on the day. Also, 106.03 is the lowest rate since Jan. 3. Meanwhile, gold is changing hands at $1,445, up 0.28% on the day.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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