China's currency is falling again.


July 5, 2016

Turmoil triggered by Brexit may have masked a more troubling market move -- China's currency is falling again.

Since British voters' shock decision to leave the European Union, the yuan has lost 1.3% against the dollar.

That's small compared with the 12% plunge in the British pound since the EU referendum, but it contributed to the yuan's biggest quarterly loss on record against the dollar -- down nearly 3% in the three months to June 30.

The yuan was trading around 6.67 to the dollar on Tuesday, its lowest level since December 2010.

China still tries to manage its currency, and significant moves in the past year have roiled global markets. Investors are watching warily.

Many economists say they expect the yuan to continue to weaken against the dollar -- but gradually.

The dollar surged against most major currencies after the U.K. vote on June 23 as investors poured cash into safer assets such U.S. Treasuries.

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