The Chinese markets have been experiencing a fall since the last few weeks and that has taken its toll on stability of global markets. Yesterday, China stunned global markets with its decision to devalue the Yuan against the dollar following a slump in exports.
This move by China has affected all emerging currencies and those engaged in major trading with China. The rupee also declined further and now stands at 64.85 against the dollar. The last time the rupee fell this low was in 2013 when the country’s economy was facing a crisis.
The Sensex opened at 150 points lower and shares of companies exporting to China came under pressure for the second day in a row. The Yuan took a plunge of 4 percent against the Dollar, and saw its biggest one day decline in ten years.
Meanwhile the Rupee is slated for a sixth consecutive day of facing losses, and by the end of the day it might stand at 65.15 per dollar. The global markets remain volatile amidst fears of a currency war being triggered by the Yuan’s devaluation, which China has termed as a free market reform.