China's Yuan Currency Sees Surprise Devaluation

BEIJING—
China's tightly controlled currency, the yuan, saw its biggest drop in two decades Tuesday. Chinese authorities say their devaluation of the currency will make it more market oriented, but analysts say the action also appears to be aimed at giving exporters more breathing room.

The 1.99 percent slide, just shy of its daily up or down limit of two percent, comes just days after China announced that exports had once again fallen, contracting in July more than eight percent from the previous year.

Analysts say the recent volatility in the country’s stock market also played a role.