Yuan Hits 19-Month Low Amid Intensifying Trade War

China's yuan has hit a 19-month low against the U.S. dollar amid escalating Sino-U.S. trade tensions. The drop follows the U.S. implementing tariffs, prompting China's central bank to loosen its currency grip. Efforts to stabilize the market continue amid concerns of financial instability and capital outflows.

The Chinese yuan slid to a 19-month low against the U.S. dollar on Wednesday, as tensions in the Sino-U.S. trade war showed no signs of abating.

Afternoon trading saw the yuan drop by 0.2% to 7.3498 per dollar, while its offshore counterpart initially sank to a record low but later regained some losses.

Economists warned that the weaker yuan could lead to increased pressures on China's economy and potentially ignite unwanted capital outflows, despite the potential relief it offers to exporters.

(With inputs from agencies.)