BEIJING— China’s politically sensitive yuan has sunk to a 22-month low against the dollar after the U.S. Treasury declined to label Beijing a currency manipulator amid a mounting tariff battle.
The yuan fell to 6.9411 per dollar at mid-morning on Thursday, the closest it has come to breaking the symbolic level of seven to the greenback since December 2016. It recovered slightly in the afternoon.
The yuan has declined by almost 10 percent against the dollar since April.
That helps Chinese exporters cope with U.S. penalty tariffs of up to 25 percent imposed in a fight over Beijing’s technology policy. But it raises the risk of inflaming American complaints about Beijing’s trade tactics.
A Treasury report Wednesday avoided labeling China a currency manipulator but said its policies would be closely monitored.