Yuan falls further, fuels fears of currency war

Shanghai: China stunned the world’s financial markets on Wednesday by devaluing the yuan for the second consecutive day, triggering fears the world’s second largest economy is in worse shape than investors believed. The move sent fresh shockwaves through global markets, pushing shares sharply lower and sending commodity prices further into reverse as traders feared the move could ignite a currency war that would destabilise the world economy. China devalued yuan as there was a clamour in government circles to help struggling exporters would put pressure on the Central Bank to let it drop lower still.