The People’s Bank of China (PBOC) is expected to set the Yuan reference rate 7.1055 per US Dollar today, having announced the fixed the mid-point rate at 7.0570 on Monday.
Essentially, the central bank is expected to devalue Yuan by 485 pips. That will likely trigger another wave of risk aversion in the markets in which case traditional safe havens like Gold, Japanese Yen, and Swiss Franc could rise sharply. The slide in Yuan will likely hurt Asian currencies except Japan’s Yen.
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