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The move was carried out to make the yuan more market-oriented. Malaysia’s ringgit and the Indonesia rupiah plunged to their lowest levels in 17 years.

Another drop in China’s currency sent global markets mostly lower on Wednesday as the move raised worries about the world’s second-largest economy, but US stocks finished mostly higher Wednesday as an afternoon rally led by Apple and energy equities overcame early...

The Nasdaq Composite Index closed up 7.60 points, or 0.2%, at 5,044.39, after being down as many as 91 points.

Sources said the move to devalue the yuan reflects a growing clamour within Chinese government circles for a devaluation of perhaps up to 10% to help its struggling exporters.

“China does not have the need to start a currency war to gain advantage”, he said.

After Tuesday, again on Wednesday for the continued second day the stocks in China dropped.

On past precedent, a devaluation of the yuan is usually accompanied by a devaluation of the won, but industries that compete directly with Chinese exports in overseas markets or generate revenues from Chinese tourists are expected to suffer.

Those suggestions gained ammunition when the currency slid another 1.6 per cent on Wednesday.

The value of the Chinese yuan has been gradually rising for 10 years. They had unrealistic expectations: The market has since slammed into reverse, falling by a third in less than a month and wiping away $4 trillion in wealth….