USD/CNH rises above the symbolic level of 7.00

• USD/CNH rises above 7.00 for the first time on record. 
• Offshore Yuan is losing ground on escalating Sino-US trade war. 

USD/CNH jumped above 7.00 soon before press time and hit a high of 7.0436. 

The offshore Yuan (CNH) is taking a beating on escalating trade tensions. The US President Trump abruptly announced on Thursday that the US will impose an additional 10% duty on Chinese goods worth $300 billion, ending the month-long trade truce. 

China has vowed to fight back if the new US tariffs take effect from Sept. 1 as planned. 

At press time, the USD/CNH pair is trading at 7.0290. The slide in China's Yuan could weigh over Asian currencies and worsen the risk aversion, leading to bigger gains in the safe-haven assets like gold and Japanese Yen.