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sold on popular US and Europe-based e-commerce sites are now more expensive when their prices are converted to Singapore dollars.The Singapore Interbank Offered Rate (Sibor), the benchmark interest rate to which most home loans in the city-state are pegged, has risen to a four-month high in the wake of China's devaluation of the yuan.The implications of the yuan devaluation are high in Singapore as its dollar closely tracks the Chinese currency. The impacts are also heavy in other countries, chiefly Malaysia and Indonesia.The losers are consumers looking for items from the West and companies that import their raw materials in US dollars but sell their products in local currencies, and those with exposure to US-dollar debt.The yuan's devaluation has led to tougher external conditions to such companies even before the US Federal Reserve starts to raise its policy interest rate, as top companies in the Asia-Pacific region have increased their debt level in the past years thanks to cheap funding costs. According to Standard & Poor's, aggregated reported debt of 100 companies under its review could exceed US$300 billion by the end of 2015, compared with about $275 billion in 2014 and about $260 billion in 2013.The People's Bank of China (PBOC) lowered the guidance rate for the yuan by 2 per cent against the US dollar on Tuesday, and on Wednesday it set it 1.6 per cent lower. Yesterday, it was lowered again by 1.11 per cent to 6.40 yuan per dollar.
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