The Yuan fix has now weakened for 7 consecutive days. Aside from the August devaluation, this is the biggest devaluation in the Yuan since records began in 2004. At the current level of 6.4559 per dollar, the Yuan has retraced to the level it was at when QE ended in July 2011. Chinese stocks are fading a smidge after yesterday's afternoon session "rescue" ramp.
(note - CNY chart inverted to make comparisons easier - lower is weaker CNY compared to USD)
It's good to have friends in The IMF where not a peep will be heard as the quietest currency war in the world is under way. We presume as long as US equities don't get hurt, then The Fed, Treasury, and Chuck Schumer will just ignore it (unless and until HY's collapse becomes just too painful to ignore for all those collateral chains as The Fed withdraws up to $800bn in liquidity this week [4]).
Charts: Bloomberg
