SHANGHAI/HONG KONG — Investors are bracing for a gradual weakening of the Chinese yuan against the U.S. dollar as the Chinese central bank’s aim of keeping the currency stable faces pressure from rapidly falling domestic interest rates and the looming threat of tariffs by U.S. President-elect Donald Trump.
A change of tone in recent policy communications and a high volume of offshore yuan bond issuance show the central bank’s determination to defend the currency’s strength.
