"China Weakens Yuan China's central bank weakened the daily reference rate for its currency against the U.S. dollar by the largest percentage in more than a year and half as it continues to fight capital inflows. " Source : WSJ
China is likely pushing down the price of supplies such as iron ore to compensate for the lowering of the Yuan while benefiting from its exports .
The Chinese Authorities have just come out of their annual meeting and reaffirmed their 7.5% GDP growth target. Since the GFC they have been erring on the safe side so there is no reason why they should wrong now. China's command economy can be more quickly pump primed than the so called western market economies.
