Asian Currencies Post Worst Week Since 2011 on Yuan Devaluation
This article is for subscribers only.
Asian currencies recorded the biggest weekly drop in four years as China’s surprise yuan devaluation deepened concerns about a slowdown in the world’s second-biggest economy.
Malaysia’s ringgit and Indonesia’s rupiah sank to 17-year lows and stock markets across the region tumbled after the People’s Bank of China cut the yuan’s reference rate by 1.9 percent Tuesday, triggering its biggest decline in two decades. The move came days after data showed Chinese exports shrank for a fifth month in July, adding pressure on exchange rates that were already depreciating amid signs the Federal Reserve will raise interest rates for the first time in a decade.