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China currency devaluation: Who is this helping?
(Note: companies that could be impacted by the content of this article are listed at the base of the story (desktop version). This article uses third-party references to provide a bullish, bearish and balanced point of view; sources listed in the “Balanced” section)
As President Trump threatens to impose more tariffs on goods from China, the response was China devaluing their currency. For the first time in more than a decade, the yuan is at an all-time low of 7 yuan per dollar. With investors fearing that this will have a heavy impact on global growth, many have got out of their Asian currency investments associated with exports and moving to safer investments, like the Japanese yen. Although this may lead to economic growth for China, it may lead to increased inflation and a currency war worldwide.