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re: DOW falls 1000 points after opening bell
Posted on 8/25/15 at 9:19 am to DynastyDawg
Posted on 8/25/15 at 9:19 am to DynastyDawg
quote:
From what I understand it has a lot to do with the Chinese currency becoming way too overvalued.
Is it because they try to peg it to the dollar, which has been relatively strong relative to other currencies?
I get the basics of stocks and finance, but currency markets are well above my knowledge.
1
Posted on 8/25/15 at 9:47 am to Duke
Their currency was extremely overvalued. They want it to be on par with the US dollar. With that being said, most economists believe it was hurting their growth in exports. By devaluing the currency, it makes it cheaper/more likely to hit their export growth target.
With that said, there are multiple viewpoints as to what specifically happened, but this is the one I tend to agree with.
With that said, there are multiple viewpoints as to what specifically happened, but this is the one I tend to agree with.
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