China’s yuan, also called renminbi, slumped around 4% in September as the Fed’s tightening spurred a rally in the dollar against other currencies. The yuan fell to a record low against the dollar offshore, while its onshore rate was around levels not seen since the 2008 financial crisis. A weaker currency is generally seen positive for Chinese exports, but its stability is considered even more important for the world’s second-biggest economy and the rest of the world through trade. For emerging markets, the yuan has been a key, steady anchor. 1. Why is the yuan so weak? While part of the weakness is due to the Fed’s ... (full story)