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Fed Must Account for Yuan Devaluation During September Meeting: Analyst

China's yuan currency continues to depreciate against the U.S. dollar, falling 3 percent over the past three days after the People's Bank of China devalued the currency.
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China's yuan currency continues to depreciate against the U.S. dollar, falling 3 percent over the past three days after the People's Bank of China devalued the currency. The move comes as China hopes to boost exports, which showed weakness in July. A weaker currency makes its goods more attractive to overseas buyers. China is also trying to show that its currency is mature enough to be included in the International Monetary Funds' special drawing rights basket of currencies. Inclusion would be a huge milestone for China. Michael Hewson, the chief market analyst at London-based CMC Markets says the Federal Reserve needs to consider the falling yuan, which is strengthening an already strong dollar, during its September meeting, when many economists expect the central bank to hike short-term interest rates. TheStreet's Scott Gamm reports from New York.

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