The RMB Tumbles again

The nearly uninterrupted move since April saw the Yuan weaken 7.5%, from 6.25 to a low of 6.72. The currency has since retraced to 6.63 at the time of writing, however the past month remains the biggest one-month move in recent years. This devaluation comes during trade war talks and puts pressure on the US, as Chinese products become significantly more expensive.

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Amid currency fluctuations, Chinese stocks have declined nearly 20% since the start of the year, a concerning development for global markets. For resource-based economies like South America, they need strong Asian demand to keep commodity prices up. They will face a serious ripple effect if China slows down sharply. Moving forward, expect continued volatility in these markets until trade tensions dissipate. ​​​​