Unpegged renminbi starts guessing game for traders

21 Jul 2005

China replaced one kind of uncertainty with another this week, by beginning the process of letting its currency rise against the dollar and setting off what could be a long scramble upwards for US Treasury yields.

For the last two or three years the renminbi's decade-old peg at Rmb8.28/$ has been one of the most intense pressure points between the shifting tectonic plates of world finance.

Whether — and when — China would bow to the economic force of its huge ...

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