· How Beijing manages yuan will be key to regional stabilityThe...

· How Beijing manages yuan will be key to regional stability

The yen fell to its lowest since 1992against the yuan in late April.

Photographer: Akio Kon/Bloomberg

By Tania Chen and Ruth Carson

May 9, 2024 at 5:25 AM GMT+8

Updatedon

May 10, 2024 at 11:29 AM GMT+8

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As the yen plumbs new lows, someinvestors are pondering an almost unthinkable scenario in a region busybolstering falling exchange rates — a series of competitive devaluations thatstarts a new Asian currency war.

Suspected intervention to drag the yen off a 34-year low against thedollar is already seen as unlikely to have a lasting effect if Japan continues alone, raising the prospect of another bout of weakness in the beleaguered currency. That could push competitive tensions with exporting neighbors SouthKorea and Taiwan to a peak — and heap pressure on China where chatter is already growing about the potential for a yuan devaluation