'China doesn't need to punish itself for others' foolish trade policies': Wall Street warns Beijing against weakening its currency

AP/Emily Wang

• The Chinese yuan has been sinking to fresh lows versus the dollar.
• Though the People's Bank of China has tolerated the depreciation beyond its stated exchange-rate policy, analysts say yuan depreciation as a tool in a trade war would be too costly.
• Follow the Chinese yuan in real time here.

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Amid China's currency sell-off and trade battle with the US, some analysts are drawing comparisons to 2015, when the country's central bank allowed the yuan to drop nearly 5%.

The yuan on Tuesday hit its lowest level versus the dollar in nearly a year. The currency has plummeted 6% versus the dollar since March, when the Trump administration announced plans to penalize China for what officials found to be unfair trade practices.

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See Also:

• Chinese stocks slammed again as the trade war-fuelled bear market deepens
• A group linked to the Chinese government has warned of a looming 'financial panic'
• The Chinese yuan has crashed to its lowest point this year

SEE ALSO: Trump's trade policy is a rerun of a terrible 1980s policy where 'American consumers were the biggest losers'

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