The Impact of China’s Currency Devaluation

August 08, 2019 | Ben Mohr, CFA, Director of Fixed Income

In response to the latest round of tariffs announced last week and set to take effect September 1st, China devalued its currency on Monday. Predictably, this currency devaluation roiled markets with major equity indices plummeting 3% on Monday, with a slight recovery Tuesday as China walked back its devaluation intentions. However, Wednesday’s markets featured further volatility and lower bond yields as investors flocked to safety amidst the longer-term uncertainty created by this week’s news.

This newsletter examines the potential effects of China’s currency devaluation including an analysis of the impact on investments in both the U.S. dollar and the Chinese yuan using the previous two Chinese currency devaluations over the last five years.

Read > The Impact of China’s Currency Devaluation

The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.

Ben Mohr, CFA
Director of Fixed Income

Get to Know Ben

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