Facing intensified U.S. tariffs, the Chinese yuan has plunged to its lowest level in nearly two decades, weakening significantly against the US dollar. This latest slide comes amidst escalating tensions between the world’s two largest economies. The People’s Bank of China (PBOC) is actively intervening with measures like a stronger-than-expected midpoint rate and restricting state-owned banks from purchasing dollars, but these efforts haven’t been enough to halt the currency’s decline. The yuan dropped to 7.3498 per US dollar in onshore trading, reaching levels last seen in December 2007. This significant drop reflects the escalating trade conflict between the two nations, as the U.S. imposes a 125% tariff on Chinese imports, adding further fuel to the fire.