The New York Times reports, "The central bank set the official value of the renminbi nearly 2 percent weaker against the dollar. The devaluation is the largest since China's modern exchange-rate system was introduced at the start of 1994. China's abrupt devaluation is the clearest sign yet of mounting concern in Beijing that the country could fall short of its goal of roughly 7 percent economic growth this year. Growth is faltering despite heavy pressure on state-owned banks to lend money readily to companies willing to invest in new factories and equipment, and despite a stepped-up tempo of government spending on high-speed rail lines and other infrastructure projects."

"Oil fell on Tuesday on concerns of weaker demand from China after the world's top energy consumer devalued its currency and as OPEC signaled supplies from rivals were proving more resilient than expected to low prices. China's central bank made a "one-off depreciation" of nearly 2 percent in the yuan after a run of poor economic data, guiding the currency to its lowest point in almost three years. Front-month Brent futures were down $1.05 at $49.36 a barrel by 1325 GMT, erasing most of the gains made in oil's biggest daily rally since late May the previous session. U.S. crude fell $1.31 to $43.65 a barrel," writes Reuters.

The Wall Street Journal reports, "Financial markets have reacted to signs that Chinese authorities believe it is necessary to act to boost flagging growth, said Ewen Cameron Watt, chief investment strategist at BlackRock's Inc.'s Investment Institute. "For markets today it's a case of shoot first, ask questions later," said Mr. Watt, whose firm oversees $4.7 trillion in assets. A weaker yuan could hurt the competitiveness of firms outside China by making their goods and services relatively more expensive, while companies that generate sales in China could find revenue and profit generated in yuan are worth less in their home currency."