China’s Central Bank Hits Milestone as Yuan ‘Breaks 7’

China’s central bank set the yuan’s daily reference rate at 7.0039 to the U.S. dollar on Thursday, the first time it has set the midpoint (link in Chinese) weaker than the key psychological threshold of 7 yuan since the global financial crisis in 2008. The move could exacerbate trade tensions with the U.S., which on Monday branded China a currency manipulator.