On December 3, 2024, the Chinese yuan experienced a significant decline, reaching its lowest value in a year. The onshore yuan fell by 0.2%, trading at 7.2890 per dollar, marking its weakest point since November 2023.
This downturn is attributed to the potential for increased tariffs on Chinese goods under the administration of former President Donald Trump. Additionally, the strength of the US dollar, bolstered by the resilience of the US economy, has contributed to the yuan's depreciation. The Bloomberg Dollar Spot Index rose by 0.5% in the previous trading session, further impacting the currency's value.