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As China's currency hits nearly 16-year lows, investors bet on more declines
China's tightly managed currency fell to the lowest level against the greenback in almost 16 years on Thursday. Why it matters: The weakness of the currency (officially known as the renminbi, but often referred to as the yuan) reflects the growing consensus that the world's second-largest economy and biggest single driver of global economic growth for decades is in deep trouble. • And with the economy looking weak, speculators appear to be betting against the yuan. How it works: Besides trade and economic conditions, currency values are heavily influenced by "interest rate differentials," or big gaps between ... (full story)