In this
Brief Note in the NYTimes, China is reported to have ended its peg to the dollar.
Instead they will go to a trading in a "tight band" against a basket of currencies. The Yuan has already strengthened to 8.11 to the dollar, vs a previous peg of 8.28 to the dollar.
I am very interested to see how this plays out, and curious to know if this has anything to do with the bidding war for UNOCAL, and US gov't opposition to the deal.
How high will the Yuan go?
More from AP
Still More
Dollar down, gold up
Are these related stories, do you think?
China has options to retaliate over UNOCAL fracas
UNOCAL spurns CNOOC, accepts lower Chevron bid
Full Text of Chinese Central Bank Statement
More complete NYTimes blurd from Reuters