While the yuan has depreciated 1.5% over the past two weeks to the lowest level since November 2010, developing-nation and U.S. equities have held steady over the same period and the VIX volatility index has tumbled, according to Bloomberg. Even the added headwind of Britain’s vote to leave the European Union has failed to derail markets that just six months ago convulsed with every move lower in the Chinese currency. Global investors are growing more comfortable with a weaker yuan after China’s central bank improved its communication with markets and took steps to prevent a downward spiral of depreciation and capital outflows.
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