The Chinese renminbi has rapidly weakened against the US dollar recently. Downside risks to global growth mean upside risks to the broad USD, in the view of economists at HSBC.

Concerns over China’s economy can have spillovers to the EUR and others

“If markets express concerns over China’s economy via a weaker RMB, then its spillovers cannot be ignored for the EUR and others.”

“Downside risks to global growth mean upside risks to the broad USD.”