Concerns that China’s struggling economy may limit global growth are highlighted by the yuan’s sharp decline against the competition’s dollar

Concerns that a downturn in the second-biggest economy in the globe could slow global growth are intensified by the Chinese yuan’s sharp decline over its major rival, the US dollar.

The renminbi dropped as much as 0.6% on Monday, selling at a 7-month low against the dollar, to a little under 7.22 yuan.

Despite the Federal Reserve pausing its interest rate hike campaign this past week, which was expected to harm the Chinese currency by making it less attractive to international traders pursuing higher returns, the yuan has dropped compared to its US rival.

Since Beijing ended its rigorous zero-COVID regulations late the previous year, there have been more concerns regarding the health of China’s economy, which have referred to the renminbi’s decline. In 2023, industrial production will stop, and export and import levels will decline.

As a result of China’s significant position in international trade and its large source of interest in goods and services, concerns about a larger downturn in the global economy have been renewed.