Chinese Yuan Tumbles Again

One of the big market stories of the weekend/week: The Chinese Yuan weakened again after China announced over the weekend that it would widen the “band” in which the currency was allowed to trade. Basically, the government sets a midpoint price, and now there’s a 2% band around that price around which the market can move the value of the currency. Previously the band was set at 1%.

As you can see in this chart of the US dollar vs. the yuan, the yuan has been falling a lot lately, and last night it dropped again.

Via XE.com:

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