The Chinese yuan reached an 11-year low in continental trade and fell to a record low in offshore after a sharp escalation of the US-China trade war, which undermined investor confidence and overshadowed global economic prospects.  

The trade war US President Trump started and is now escalating, has turned into much more than trade. Some analysts point out that this is a technology war on top of that while others draw comparisons to a new cold war between two superpowers. Trump has made every effort to escalate the trade war, especially when news reports after bilateral meetings sounded a more optimistic. The reason may be that took on the mantle of a war time president as the election cycle is coming closer to a full start. Along the way, his advisors and Trump have severely miscalculated the Chinese response.

The Chinese yuan fell by more than 1% to an 11-year low on Monday amid growing concerns about a sharp escalation of the US-Chinese trade war, which caused sales of other currencies in the region. Growing concerns about global trade led investors to rush to safe-haven assets, while the Japanese yen rose to a seven-month high against the dollar.