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China reverses currency devaluation

China has increased the value of its currency against the US dollar, following a number of large devaluations the previous three days.

The People’s Bank of China increased the mid-point of the yuan’s trading range by 0.05 per cent, to 6.3975 yuan to the US dollar on Friday. It followed devaluations of between 1.1 per cent and 1.85 per cent the previous three days.

Chinese devaluation: good or bad for Australia?
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The Australian dollar barely moved on the latest news, in contrast to the one US cent falls it suffered on Tuesday and Wednesday, when the yuan was devalued.

China has been plagued by a volatile share market and a slower economy in recent weeks. The government has responded with unconventional policies that have had knock-on effects, particularly for the Australian economy, which is highly responsive to China’s fluctuations.

– with AAP

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