Trade friction hits stocks, yuan slumps to lowest in over a decade

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China’s yuan falls below the key level of seven per dollar as emerging market currencies soften broadly over Beijing-Washington trade war woes

A US dollar banknote featuring American founding father Benjamin Franklin and China's yuan banknote featuring late Chinese chairman Mao Zedong are seen among US and Chinese flags in this illustration picture taken May 20, 2019.

MSCI's All Country World Index, which tracks shares in 47 countries, was down 0.7 percent on the day. That put it down almost 2 percent including Friday's loss. In offshore markets, the yuan fell to its weakest since international trading of the Chinese currency began. Headed for its biggest one-day drop in four years, it was last down 1.4 percent at 7.0744 in offshore markets.

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