Market Insider

China's sudden currency slide sparks rumors of an anti-Trump policy move 

Key Points
  • China's currency in the past week and half has fallen against the dollar, as President Donald Trump ramped up trade rhetoric and threatened more tariffs and other action.
  • That sparked speculation in the market that China could use its currency as a policy weapon, intentionally cheapening it to make its goods cost less on the world market.
  • However, analysts do not believe China would intentionally devalue its currency and said it could take other steps, like tariffs, to fight back against the U.S.
U.S. President Donald Trump and China's President Xi Jinping leave a business leaders event at the Great Hall of the People in Beijing on November 9, 2017.
Nicolas Asfouri | AFP | Getty Images