U.S. dollar on the rise as China devalues yuan
Source: Yahoo! finance
The U.S. dollar lunged higher on Tuesday as China allowed its yuan to fall to three-year lows, a shift that heightened unease about the world's second-largest economy even as it promised a much-needed boost to exports.
Asian stocks slipped and sovereign bonds rallied as investors weighed the implications of the surprise move, which seemed to end months of officially sanctioned yuan strength.
China's central bank described the move as a "one-off depreciation" of nearly 2 percent, and said it was based on a new way of managing the exchange rate that better reflected market forces.
Investors reacted by selling the Australian dollar, often used as a liquid surrogate for the Chinese currency. The Aussie (AUD=D4) sank to $0.7325, from $0.7430 ahead of the news.
Read more: http://finance.yahoo.com/news/asia-stocks-swing-higher-google-002632659.html
Bad news for US exporters...