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Yuan devaluation boosts investors betting against Asia

Caxton Associates and Omni Partners among hedge funds to have profited from China's currency devaluation

Yuan devaluation boosts investors betting against Asia

China’s currency devaluation is delivering a windfall to investors that anticipated a slowdown in the second-largest economy and then bet against the free-floating currencies of China’s regional trading partners.

A 4% decline over two days in the yuan has hammered the Malaysian ringgit, Singapore dollar and Indonesian rupiah, among others. Many investors expect further declines across the region, reflecting likely economic weakness as China competes more vigorously in export markets.

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