China vowed to hit back at Donald Trump’s new tariffs, but what commodity traders didn’t bargain for was a one-two punch from Beijing that included a currency devaluation.
Oil prices slumped, with Brent crude crashing beneath key $60 support, as China allowed the yuan to tumble to its weakest level in a decade against the dollar. The Beijing action was a retaliation against Trump's plan to impose from Sept. 1 a 10% tariff on hitherto untaxed Chinese imports of $300 billion. The Xi Jinping administration added to the blow of the devaluation by ordering state-owned companies to suspend imports of U.S. agricultural products.
New-York traded West Texas Intermediate crude settled down 97 cents, or 1.7%, at $54.69 per barrel.
London-traded Brent crude, the benchmark for oil outside of the U.S., slid $2.05, or 3.3%, to $59.84.
Source : Investing.com