6.9: Dollar/CNY exchange rate
China’s exchange rate has hit an eight-year low against the dollar – something that’s previously signalled turbulence in financial markets.
Stock markets tumbled when China’s yuan depreciated against major developed country currencies in August 2015 and shares in commodity companies were hammered in early 2016 after another surprise dip in the currency.
A key global exporter, a weaker Chinese currency places downward pressure on manufactured goods around the world and historically also tends to knock the price of key industrial commodities.
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