Beijing: China is making efforts to stabilize its currency following the announcement by US President Donald Trump of a new tariff hike, which has caused financial markets to react and pushed the yuan to its weakest level since January.

According to Anadolu Agency, on Thursday, China's central bank set the yuan's reference rate against the dollar at 7.1889, marking its lowest point since January 17. This adjustment comes amid increasing pressure on the yuan after Trump declared a 10% tariff on all imports, with even higher rates aimed at goods from the EU, China, Vietnam, and Japan.

The announcement on Wednesday caused a significant stir in financial markets, prompting investors to turn to safe-haven assets and driving gold prices to a record high. In response to the market volatility, Chinese regulators issued a warning.

Earlier in the day, the offshore yuan fell to 7.349 per US dollar, its weakest since February, after reports of a 34% tariff hike on Chinese imports by the US. However, the currency slightly recovered by midday, standing at 7.306 per dollar.

Gold prices have also soared, with spot gold reaching an unprecedented high of $3,167 per ounce on Thursday morning. This surge is part of an ongoing rally fueled by market uncertainties linked to Trump's return to the political arena.

In response to these market conditions, the Shanghai Gold Exchange issued a statement warning traders about the risks in the precious metals market.