(Yicai Global) June 20 -- The onshore yuan's dollar value has hit a fresh five-month low as the prospect of a China-United States trade war looms ever closer, damping investor sentiment.

The onshore yuan officially closed at 6.4743 against the greenback yesterday, weakening 687 pips from the close of night trading on June 15. It rallied to close last night's trading session at 6.4890.

The offshore yuan also depreciated to a five-month low of 6.4936, closing night trading at 6.4886.

China's central bank, the People's Bank of China, set the central parity rate at 6.4235 yesterday morning, up 71 basis points after the redback hit a new low since January on June 18, but the rallying dollar kept the spot rate down.

Tensions between China and the US crescendoed once more this week after American President Donald Trump threatened to impose a 10 percent tariff on USD200 billion worth of Chinese goods, prompting China's commerce ministry to accuse the States of vilating market laws. The new measures come on top of a 25 percent tax on USD50 billion of Chinese imports announced on June 15.

The Australian and Canadian dollars both hit one-year lows against the greenback and the euro fared poorly. In contrast, the yen and Swiss franc both gained on the US currency.

Editor: James Boynton