US-China Trade War Turns into Currency War | Oil Prices Fall
Published August 6, 2019
US Treasury Secretary Steven Mnuchin said that China is manipulating its currency and that he will engage with the IMF to eliminate unfair competitive advantage by China’s actions. In response, China’s central bank rejected the accusation and said the claim has seriously undermined the international financial order and risked further market turmoil.
WTI crude prices rebounded slightly on Tuesday from the recent fall, however, is still trading near two-month lows due to escalating trade tensions between China and the United States which could limit crude demand from the world’s two biggest buyers. WTI crude was up by 0.3 percent, at 54.86 a barrel on the day.
Federal Reserve Governor Lael Brainard said that she is closely monitoring market developments and will continue to be very attentive to them, stating that the US central bank is committed to sustaining the economy’s expansion.