China’s yuan extended losses, having posted its first monthly decline in four in October, as investors remained anxious ahead of next week’s US presidential election and its impact on Sino-US trade, Reuters reports.

Uncertainty around the election and looming threats of higher tariffs on Chinese exports prompted many currency traders to hedge against higher turbulence in the yuan in the coming week.

The yuan’s recent about-face comes as investors buy the dollar and sell emerging market currencies, mainly the yuan, in anticipation of Republican candidate Donald Trump making a return to the White House.

As part of his pitch to boost American manufacturing, Trump has promised voters he will impose tariffs of 60pc or more on goods from China. Trump’s proposed tariff and tax policies are seen as inflationary and therefore likely to keep US interest rates high and undermine trading partners’ currencies.