Yuan jumps to post-revaluation high

[TomCADem]

Source: Reuters

China's yuan soared on Tuesday to its highest level against the dollar since its July 2005 revaluation after the central bank signaled it would allow the yuan to continue its rise on Tuesday.

The People's Bank of China set the yuan's daily mid-point at 6.7980 against the dollar on Tuesday, the highest level since the yuan's revaluation in July 2005, signaling the central bank could allow the yuan to rise again for the day.

Spot yuan opened at 6.7968 against the dollar, but then rose to as high as 6.7900 in early trade, up 0.11 percent from the close on Monday, when it jumped 0.42 percent.

The yuan may rise or fall 0.5 percent from its mid-point each day, but it has moved only a small fraction of its band in most trading sessions since it was revalued by 2.1 percent to 8.11 per dollar on July 21, 2005.


Read more: http://www.reuters.com/article/idUSTRE65L09120100622?type=ousivMolt

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The Yuan has a ways to go before it is no longer undervalued. Kudos to Senator Chuck Schumer for keeping the pressure on this issue.

[BeFree]

1. so

It will take less yuan to buy more of America?

[TomCADem]

2. No, Less Subsidization of Chinese Exports By China...

...and conversely less of a barrier to U.S. exports to China.

[BeFree]

3. Right

It makes US property cheaper for Chinese.

Did you ever wonder why there are at least two Chinese restaurants per urban mile in the US?

[TomCADem]

4. No, please explain...

I am looking forward to see how you answer this question in non-racist way: "Did you ever wonder why there are at least two Chinese restaurants per urban mile in the US?"

[BeFree]

5. Accusing me of something?

What is your problem?

[TomCADem]

6. Go ahead, answer the question you raised...

You asked, "Did you ever wonder why there are at least two Chinese restaurants per urban mile in the US?"

I said go ahead, explain. I am interested in your explanation. If you want to forget you asked the question, I understand.

[BeFree]

7. Your racist stab was uncalled for.

[TomCADem]

8. Go ahead and answer the question you raised...

You asked, "Did you ever wonder why there are at least two Chinese restaurants per urban mile in the US?"

I said go ahead, explain. I am interested in your explanation. If you want to forget you asked the question, I understand.

I am not saying that you are racist. I am honestly curious about your response. You are referring to Chinese restaurants in the entire U.S. I am wondering where you were going with that question.

[BeFree]

9. Now you are a broken record?

Yes, I do wonder why. Do you?

[TomCADem]

10. No, I actually never have ...

I was wondering why you raised your question in reference to a discussion of the yuan. I guess your point is that there is no relationship that you are aware of, which is what I thought,

[BeFree]

11. Economics.

Wasn't that what this thread was about?

And you are wrong.... this action does make it easier for the Chinese to buy US property.

So why the racist stab? Are you a racist?

[amandabeech]

12. I expect that the Chinese will find ways to keep things out if want to.

I haven't seen anything that indicates that western companies investing in China to sell to the Chinese market no longer must have a Chinese partner to whom the western company will turn over their intellectual property and everything else about how to run the business.

The Chinese are a tough bunch of mercantilists.

The rise yesterday and today is nice to see, but I'll reserve judgment for at least another six months on whether there has been any real change in policy in Beijing.