More than $5 trillion has been erased from the value of stocks worldwide since the devaluation of the Chinese yuan on August 11th, and this has resulted in a global sell-off of risky assets as commodity prices sank to a 16-year low. The Yuan fell by a further one per cent yesterday, but, the Australian dollar and New Zealand dollar were worse affected – falling by 1.8% and 2.8% respectively. This devaluation of the Yuan couldn’t have come at a worse time for Australia; only a month ago they were discussing an interest rate hike, but this now seems unlikely.
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