China tries to stabilize the Yuan

Lately, the decision by the People’s Republic Bank of China has been moving the markets in one way and another. Today the Chinese central bank has allowed the Yuan to rally again after it was known that certain government Chinese banks had been buying the Yuan aggressively. On the other hand, this has caused emerging markets and their currencies to have mixed reactions. In Latin America, most indices closed down. In Brazil, Chile, Argentina and Colombia, stock markets closed to the down side, while most of its currencies came back down versus the Dollar, but the Mexican markets closed to the upside. It is possible that the decisions by China will continue affecting these markets and that is why most investors are preferring to keep their capital in safe haven instruments.