Currency volatility upsets Asian growth plans

Faced with falling exports and deflation risks, it suited much of Asia to let their currencies drift lower, until China’s abrupt devaluation triggered a tide of volatility that is upsetting not just their currency management but also their growth strategies.

China’s 2 per cent devaluation on August 11 added to evidence that its economy was struggling, and overseas it caused a ripple of panic that a currency war was in the offing.

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