China devalued the yuan CNY=SAEC on Tuesday after a run of poor economic data, guiding the currency to its lowest point in almost three years. The central bank described the move as a “one-off depreciation” of nearly 2 percent, based on a new way of managing the exchange rate that better reflected market forces. “Since China’s trade in goods continues to post relatively large surpluses, the yuan’s real effective exchange rate is still relatively strong versus various global currencies, and is deviating from market expectations,” the bank said in a statement. “Therefore, it is necessary to further improve the yuan’s midpoint pricing to meet the needs of the market.” China manages the exchange rate through an official midpoint, from which it can vary 2 […]