European shares fell. The pan-European FTSEurofirst 300 index .FTEU3 was down 1 percent, led lower by car makers and luxury goods companies, whose products have just got more expensive for Chinese consumers.<\/p>\n
China’s move, which the central bank described as a “one-off depreciation” based on a new way of managing the exchange rate that better reflected market forces, triggered the yuan’s biggest fall since 1994, pushing it to its weakest against the U.S. dollar\u00a0in almost three years.<\/p>\n
In a potentially worrisome sign, China’s offshore yuan,\u00a0a more liquid instrument traded out of Hong Kong, fell 2.9 percent, exceeding the fall in the onshore yuan. It suggests more possible losses for the onshore currency, as the Hong Kong-traded yuan tends to act as a precursor to the onshore.<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":" The Rocky Road to Globalization China’s 2.0 percent devaluation of the yuan on Tuesday pushed the U.S. dollar higher and hit equity markets worldwide as it raised the prospect of a new round of currency wars and fed worries about … Continue reading ![\"China](\"http:\/\/www.w-t-w.org\/en\/wp-content\/uploads\/2015\/08\/China-Devalues-Yuan-300x259.jpg\")
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