WASHINGTON — For years, American politicians have been pressing Beijing to loosen its grip on the Chinese currency and let market forces determine the value of the yuan.
This week, China took a step toward complying, but the result wasn't what many in Washington expected.
Since China devalued the yuan Tuesday and simultaneously announced a shake-up in the way it sets its exchange rate, the currency has fallen nearly 3% against the dollar.
That's the largest two-day drop in 20 years, setting off alarm bells around the globe about the strength of the world's second-largest economy. It comes a month after China's main stock exchange in Shanghai suffered...