Currency market action focused on developments with the Chinese yuan and the Hong Kong dollar.

How canceling debt to China could backfire for the US
China could cut the vast amount of US government debt it buys in response to speculation that the United States may not repay it, amid a war of words over the coronavirus and trade, analysts have said. US news reports indicated that White House officials had debated several ways to offset the cost of the coronavirus outbreak, including not repaying some or all of the nearly $1.1 trillion debt that the US government owes China. The discussion of China’s financial connection to the US government has come as President Donald Trump and other American officials have increased their criticism of Beijing over the origins and handling of the coronavirus, and threatened new import tariffs to penaliz