Dollar-Plagued World Now Has Another Currency to Worry About

  • A weakening yuan would heap pressure on developing economies
  • Strategists see shift in PBOC’s approach to yuan fixing
U.S. Dollar Is Part of 'Negative Cocktail' for EM, Says JPM's Normand
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Winds of change in currency markets threaten to blow global investment trends further off course -- but from the East as much as the West.

While investors have been focused on a strengthening U.S. dollar and rising Treasury yields, a weaker Chinese yuan also threatens to heap pressure on emerging market assets that have already wiped out their gains for the year.