Who's afraid of a falling yuan?

Now it's the turn of the Chinese yuan. An important economic development of late has been the depreciation of Asian currencies relative to the dollar. China's currency is in the spotlight again amid new speculation over whether Beijing is implementing a competitive devaluation of some sort, or will do so—and whether this will become the excuse for a trade war. The short answer to the first question appears to be no. The yuan has lost considerable value versus the dollar in onshore trading—the domestic market where Beijing manages the exchange-rate within a band. It fell to a seven-month low of…