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Trade war

China returns softer yuan to arsenal as trade war intensifies

Currency seen 'cracking seven' if G-20 summit fails to produce deal

China has signaled a willingness to let the yuan "crack seven" -- soften beyond 7 to the dollar -- if the trade war drags on much longer.   © Reuters

SHANGHAI -- China appears willing to let the yuan weaken to levels previously thought unacceptable as the U.S. escalates its tariff threats ahead of this month's Group of 20 summit, raising the specter of renewed capital flight.

Yi Gang, governor of the People's Bank of China, on Friday countered widespread speculation that Beijing regards 7 yuan to the dollar as a line in the sand. "I don't think, along the mathematical scale, any number is more important than the other number," he told Bloomberg.

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