The Chinese yuan fell sharply against the U.S. dollar as Trump pulled ahead in key battleground states, including Florida, Ohio and Pennsylvania, late Tuesday evening.
|CYB||WISDOMTREE TRUST CHINESE YUAN FD USD0.001||27.72||-0.05||-0.18%|
|UUP||INVESCO DB US DOLLAR INDEX BULLISH FUND - USD ACC||24.72||-0.02||-0.08%|
The yuan traded down 0.69% at 6.7221 per dollar but remained near its strongest level since April 2019 as a Trump victory would likely mean four more years of tension between the world’s two largest economic superpowers.
A win for Democratic nominee Joe Biden would likely soften the tough stance enforced by Trump's China hawks such as Commerce Secretary Wilbur Ross, Trade Adviser Peter Navarro and Treasury Secretary Steven Mnuchin.
Trump’s trade deal with Beijing was signed just weeks before the coronavirus pandemic, which originated in Wuhan, China, and spread throughout the world.
The virus has infected more than 9.3 million Americans and killed 232.500. Lockdowns aimed at slowing the spread of the disease sent the U.S. economy spiraling into its sharpest slowdown of the post-World War II era.
Many lockdowns that were lifted have been reinstated in Europe and various U.S. states to some extent.
Trump has said he views China “differently” after the outbreak and has vowed to make the Asian nation pay for the damage inflicted on the U.S.
He also warned that "China will own the United States" if Biden wins.