BEIJING: China stunned the world’s financial markets on Wednesday by devaluing the yuan for the second day.
China’s Central Bank has again cut the guiding rate for the national currency, the yuan, a day after Tuesday’s record 1.9% devaluation.
The move sent fresh shockwaves through Asian markets, but the bank has sought to calm fears, saying it was not the start of a sustained devaluation.
This is now the biggest two-day lowering of the yuan’s rate against the dollar in more than two decades.
A cheaper yuan will help Chinese exports by making them less expensive on overseas markets. Last weekend, data showed an 8.3% drop in exports in July and that producer prices were well into their fourth year of deflation.
More indicators due on Wednesday for factory output, retail sales and fixed-asset investment are expected to underline sluggish growth in the world’s second-largest economy.
