China devalues renminbi to three-year low in shock move

China has surprised investors by weakening its currency almost 2% lower after a weekend of poor trade data, sending shockwaves through other Asian currency markets.

The People's Bank of China adjusts its currency every day to a certain point and allows it to trade two percentage points in either direction but on Monday the central bank reduced the renminbi's daily fix to the US dollar by 1.9%, the most it has lowered its currency in over two decades.   The headwinds and tailwinds for China and its neighbours The Bank said it was a one-off move which would make the exchange more "market-oriented" but many investors were instead expecting further cut to banks' reserve requirement ratios. At its lowest point it moved down almost 2% to...