Daily Afternoon Report 12/08/2015
The U.S. dollar dropped to a one-and-a-half week low against its Canadian counterpart today, as markets were digesting news that China devalued its currency for the second consecutive day.
Elsewhere, the dollar hit a four-year high against the Yuan after the People’s Bank of China set the Yuan’s midpoint rate weaker than at Tuesday’s closing. China devalued its currency by 2% in a surprise move on Tuesday to make its exports more competitive and shore up growth in the flagging economy. The PBOC has described the move as a “one-off depreciation”, based on a new way of managing the exchange rate that better-reflected market forces.