US dollar rises in Asia on yuan devaluation

Tokyo

ASIA-PACIFIC currencies came under pressure on Tuesday after China unexpectedly devalued its yuan currency in the face of weakening growth, driving the US dollar higher.

China's central bank announced a near 2 per cent drop in the value of its yuan against the US dollar, the biggest fall since the currency was unpegged from the greenback in 2005. The People's Bank of China (PBOC) set its daily reference rate for the yuan at 6.2298 to US$1, compared with 6.1162 yuan the previous day, effectively 1.86 per cent lower.