Mubasher: Chinese yuan (CNY) dropped to an 11-year bottom against the US dollar on Monday, as the trade conflict between the US and China escalated, Reuters reported.

The onshore yuan plunged by as much as 0.7% in the first minutes of trading to CNY 7.15, its weakest since February 2008, and the second biggest one-day drop during August.

By 11:24 am GMT, the Chinese yuan dropped against the greenback, with the USD/CNY pair falling by 0.70% to CNY 7.1454.

However, the currency later on pared losses after President Donald Trump stated that he believed that Beijing wanted to ink a trade deal, unveiling that US trade negotiators have been contacted by Chinese officials overnight to voice their willingness to return to the negotiating table.

China allowed the yuan to slide by around 3.6% until now this month, as trade tensions between Washington and Beijing have mounted, triggering fears of a global currency war.