How devaluation of yuan affects other economies

Equity markets worldwide sank as a result of that, while Asian currencies – already battered by capital outflows from the region because of expectations that the United States may raise interest rates – plunged to new multi-year lows.

Malaysia’s ringgit, for one, quickly weakened past the critical psychological level of RM4 to the US dollar over the week. It closed at 4.0805 against the greenback yesterday, losing 3.5% in just one week.