US Secretary of State Donald Trump Reaped US $ 7 a Dollar

China's decision to overcome previous myths through the appreciation of the yuan implies that it can transform into a trade war, injecting volatility into long-term foreign exchange transactions and putting pressure on the global market. US Secretary of State Donald Trump reaped US $ 7 a dollar for the first time in 11 years in Beijing.

Chinese currency to offset the effects

The willingness to use the Chinese currency to offset the effects of the one-year trade dispute is a huge symbolic, if not economical. China demonstrates its readiness to use its currency as a tool to respond asymmetrically to Trump's collection. In the global market, there has been a new frontier that dramatically increases the volatility of the foreign exchange market after the long-term recession. Especially if other countries try to weaken the currency to escape the global economic downturn.

This is the official currency introduced into the trade war," said Richard Benson, director of portfolio investment at Millennium Global, a foreign exchange asset manager. First of all, what was used in the trade war was monetary stability, which is now a clear and obvious move by Chinese to Trump's customs," Benson added. Benson said it was very difficult to predict where the currency is going. 

Economic fundamentals have said that they will buy dollars, but if Trump is in jeopardy, dollar sales may be boosted again. On Monday, the immediate winners and losers were obvious. Analysts had the largest drop in the yuan since 2015, although this fall has been orderly and the Chinese authorities have indicated that they are comfortable with the move so far.

Sudden loss

Countries with a small and open economy linked to globalization have all seen a sharp decline in the currency. Emerging markets experienced a sharp loss due to Korea's strong KRW, which is sensitive to trade. The safe-haven Japanese yen surged to a seven-month high of 106 yen per dollar. Goldman Sachs advanced the forecast of 103 yen to three months. Japanese monetary diplomats warned investors that Tokyo is ready to intervene, saying an excessive yen appreciation will threaten the export-dependent economy.

Investors say the dramatic fallout to the market depends on how the US responded here. Foreign exchange volatility has risen to its highest level in four months, but it is only half the level of 2016. Trump has taken a number of steps to lower interest rates on unilateral intervention by leaning on the Federal Reserve Board as part of an effort to weaken the dollar.

On Monday, he pinpointed China's "currency manipulation" as a "major violation" that weakened the country over time. He also asked the Federal Reserve Bank, which has been frequently attacking interest rate cuts, "listening.

Much controversial

Most analysts believe that if Trump is scrambling decades of effort to leave the currency market alone, the effect of such an intervention will be very controversial but will not depend on arbitration. Last month, White House spokesman Larry Kudlow said the Trump administration "damped" the intervention but did not hide what the US expects the market to do. James Binny, Global Calls Manager for State Street Global Advisors, said arbitration appears to be more effective as a weapon threat.

If Washington actually intervened, it could be adversely affected given the perceived devaluation of the perplexed financial markets to buy dollar security for investors. According to Citi analysts, the risk of intervention required a 5 percent rise in dollars before it survived. But regardless of whether the US is directly involved or not, the Chinese tsunami fires have a tendency for countries to wean their currencies to maintain economic competitiveness in a world of slowing growth, fund managers say.

For example, policymakers at the European Central Bank say the euro strength is a major driver of monetary policy easing, Reuters reported last week. The Swiss National Bank is likely to boost foreign exchange by pushing the value of its safe-haven franc to a two-year high due to trade tensions.

Russian President Vladimir Putin warned Monday

He would be forced to develop short-range and medium-range land-based nuclear missiles if the United States began doing so after the breakthrough of the arms control treaty. The United States officially entered into a Treaty on the Middle East Nuclear Agreement (INF) with Russia after it decided that Moscow had violated the Treaty and had already deployed at least one banned type of missile, which the Kremlin denied.

The agreement banned land-based missiles ranging from 310 to 3,400 miles (500-5,500 km), reducing the ability of both countries to initiate a nuclear attack in the short term. After talks with the United Nations Security Council, Putin ordered the Foreign Ministry and the Russian SVR Foreign Intelligence Agency to closely monitor all measures related to the prohibited missile development, production or deployment under the disposal agreement.

Putin said in a statement, "If Russia obtains reliable information that the United States has started to develop and produce such a system, Russia will have no choice but to make a full-scale effort to develop similar missiles. The Russian government, meanwhile, said that Russian threats can offset any threat from the United States through missile and maritime launch systems combined with hypersonic missile development.

He added that Moscow and Washington are now necessary to resume arms control talks and prevent "free" arms race from taking place. In order to avoid confusion without rules or regulations, we must look back on all the dangerous consequences and start a serious and meaningful conversation with no ambiguity," Putin said. Putin issued his statement after the 1987 mid - term nuclear agreement ended on Friday, announcing the intention of the United States to test and deploy weapons forbidden by the treaty.

The United States argued

The United States argued that the withdrawal of Russia was due to violations of the Russian convention. Putin argued that the United States "severely worsened the world situation" in one way and for extreme reasons, and raised fundamental risks for everyone. In a statement, he said that if Russia sees developing and deploying new medium-range missiles, it will closely monitor Washington's actions and respond kindly.

The INF Treaty, signed by US President Ronald Reagan and President Mikhail Gorbachev, banned the production, testing and deployment of ground-based cruise and ballistic missiles in the 500-5,500-kilometer range. Such weapons seemed to be particularly unstable because of the short time it takes to reach a target compared to intercontinental ballistic missiles, thereby increasing the likelihood of a nuclear strike against false alarms.

The United States accused Russia of developing and deploying cruise missiles that violated the terms of the agreement. Russia denied the violation and, in turn, accused it of violating the United States. Putin said Russia will maintain security by relying on future weapons, including the currently active X-101 and Kinzhal missiles, Kalib and Zircon hypersonic missiles carried by submarines and naval vessels.
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