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The yuan is creeping toward 7 against the dollar, and that could be a problem for some Chinese firms

Weizhen Tan

Investors have been keeping a close watch on the Chinese yuan, seen as a key indicator amid the intensifying U.S.-China trade war — and much concern has been centered on whether it will breach the 7 yuan per dollar key level. The currency slide would hurt Chinese firms, as well as Beijing's push for greater use of the yuan internationally, according to Khoon Goh, head of Asia research at ANZ Bank. A weakened yuan could hit regional currencies and lead to higher costs for those who hold dollar-denominated bonds, said Arthur Lau, co-head of emerging markets fixed income at PineBridge Investments.