U.S. President Donald Trump condemned China's decision to let the Chinese yuan fall below the 7-per-dollar threshold, calling the move "currency manipulation."
"China dropped the price of their currency to an almost a historic low," Trump said in a tweet. "Are you listening Federal Reserve? This is a major violation which will greatly weaken China over time!"
Trump's comments come after China responded to the U.S. president's latest tariffs threat by allowing its currency to weaken past 7 yuan per dollar for the first time in 11 years.
Meanwhile, China's central bank governor, Yi Gang, said the country will not pursue competitive devaluation of the yuan, and will not use the currency as a tool to tackle external disruption, including trade rifts, Reuters reported.
The onshore yuan dropped 1.26% against the dollar to 7.0236 as of 11:15 a.m. Beijing time on Aug. 5 after the People's Bank of China set the reference rate for the currency at 6.8996 per dollar, its weakest level since December 2018.