What Yuan Move Means for September Federal Reserve Rate Hike

(Before It's News)

Analysts fear PBOC move has restarted currency wars

by Sara Sjolin
Market Watch

China’s central bank devalued its tightly controlled currency early Tuesday, fueling speculation that the move could delay the first interest-rate hike by the Federal Reserve in nearly a decade.

The yuan suffered its largest one-day loss in two decades following the surprise move, with the dollar jumping to buy 6.3294 yuan, according to FactSet. That’s up from around 6.2058 earlier on Tuesday. The yuan had been trading in a tight range in recent months, mainly due to Beijing’s intervention in the foreign exchange market.

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