Offshore Chinese yuan cracks major level to hit the weakest on record

In each of the past three years, the US dollar peaked at 7.37 against the yuan, or just below that. That level has now given way and the pair has touched a fractional record high.

Have a look at the monthly chart:

This could turn into a problem for risk assets and spark fears of an FX war. I don’t really think that’s the case as this is about deteriorating Chinese fundamentals due to a trade war but I’m sympathetic to any argument. The next question is how high this goes?

This article was written by Adam Button at www.forexlive.com.