China’s currency hits 16-month low on Trump tariff fears

China’s currency has weakened to a 16-month low following strong US economic data overnight and as the potential for sharp tariff increases from the incoming Trump administration fuels concern over growth prospects for the world’s second-largest economy.

The onshore renminbi fell 0.1 per cent to Rmb7.33 against the dollar on Wednesday, its weakest since September 2023, in spite of the People’s Bank of China’s maintenance of a steady fixing rate ahead of Donald Trump’s inauguration this month.