The factors supporting a stable yuan—a weakening dollar and a stabilizing Chinese economy—are reversing. Earthquakes are hard to predict. Tremors in China’s currency, however, have been easier to spot.
Following the release of Federal Reserve minutes Wednesday that signaled coming rate increases, the yuan embarked on a mini flash crash, momentarily trading at 6.614 to the dollar, its weakest level since February. The offshore variant of the Chinese currency quickly recovered some of that ground. But the dislocation, however ephemeral, should be seen as a fair warning...............................................Full Article: Source
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