As the trade war intensifies, financial markets are increasingly speculating that China might adopt an aggressive yuan devaluation strategy against the dollar, breaking from its policy of maintaining a stable currency. Strategists across New York and Hong Kong are preparing for the possibility that Beijing’s “resolute” response to President Donald Trump’s tariffs could involve allowing the yuan to weaken significantly. This controversial move would theoretically make Chinese exports cheaper but risks capital flight. President Xi Jinping’s administration has already announced a 34% tariff on all U.S. imports starting April 10.
— new from Bloomberg
