For
third consecutive day China devalued the yuan. Before the start of trading
today the rate against the dollar was reduced by 1%. On Tuesday, the yuan was
devalued by 1.9% and on Wednesday another
1.6% were added.
Today yuan fell to 6.4510 against the dollar, which is the lowest value since
August 2011.
The Ministry of Economy said that the yuan policy will help exports.
MSCI Emerging Markets index fell by 1.1% to 878.27 points.
Compared to the peak values in September 2014 the index lost almost 20% and now
is in bearish mood.
Asian currencies dropped amid concern that the weak yuan will force other
countries of the region to take similar action.
Meanwhile, oil is under pressure on the decision of the Chinese authorities.
The euro reached a one-month high of 1.1215 after the Chinese central bank set
an average benchmark of 6.3306 yuan per dollar, which is a lower level than the
devaluation on Tuesday.
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