Fallen yuan

The Chinese yuan has fallen to the lowest level this year against the US dollar after the People’s Bank opened the monetary spigot to avert an economic slowdown.

 It raises the spectre of capital outflows and a potential currency scare akin to late 2015 if the dollar keeps rising.

 The slide in the yuan exchange rate over recent days comes as global investors start to vote with their feet, no longer viewing China as a “safe haven” impervious to trouble sweeping other emerging markets. 

 The currency has been falling since early April but the pace has picked up sharply, weakening by almost 3pc to 6.55 against the dollar over the last seven trading sessions.

 It is a large move for a carefully managed...


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