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STI sheds 2% on yuan plunge, trade tensions : Jardine-linked stocks and banks among big losers, with turmoil expected to continue

Aug 06, 2019 - The Straits Times (Singapore)

Local shares plunged yesterday on the back of a sharp fall in the yuan and renewed fears over the trade war.

The sombre mood in Singapore's birthday week sent the Straits Times Index (STI) down 66.6 points, or 2.04 per cent, to 3,194.51.

A day after US President Donald Trump announced new tariffs, the yuan breached a key level of seven to the US dollar, which FXTM chief market strategist Hussein Sayed said could hint at China's strategy for managing the impact of the tariffs.

"The (People's Bank of China) has spent hundreds of billions of dollars over the past couple of years to prevent (the yuan) from breaching this key level, but now that doesn't seem to be the case," he noted...