The news of China devaluing their currency seems to have taken everyone by surprise. Might this be because of the expected rise in interest rates in the USA?
When I considered this possibility, this thought came to my mind – ‘this is how economists play the market’.
If this is correlation is correct, one has to appreciate how they play off various economic variables against each other. On a related note, due to this devaluation, the price of gold picked up since the past couple of days.