Markets rebounding from China’s money move
by Harvest Prude
Posted 8/06/19, 01:06 pm
China allowed its tightly controlled currency, the yuan, to plunge to a 7-to-1 valuation against the U.S. dollar Monday, its lowest level in more than a decade. The devaluation made Chinese goods cheaper around the globe at a time when the United States is trying to discourage buying from the communist country. Last week, President Donald Trump threatened 10 percent tariffs on an additional $300 billion in Chinese imports if trade talks between the nations don’t yield results soon.
How are the markets doing? On Monday, all three major U.S. indexes had their worst day so far in 2019. China priced the yuan a hair higher, at 6.9683 to the dollar, on Tuesday, and U.S. markets showed signs of recovery.
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Harvest is a reporter for WORLD based in Washington, D.C.