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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Real Man who wrote (29030)	6/19/2010 11:43:05 AM
From: John	1 Recommendation Read Replies (1) \| Respond to of 71456

It will be interesting to see the impact this news has on the U.S. equity markets on Monday. Could it become a market mover or is it meaningless political rhetoric ahead of the G20 summit? reuters.com Peg is dead as China vows yuan flexibility excerpts: (Reuters) - China will gradually make the yuan's exchange rate more flexible, the central bank said on Saturday a week before a G20 summit, strongly suggesting that it was ready to break the currency's 23-month-old dollar peg. However, it all but ruled out a one-off revaluation or major appreciation, saying there was "no basis for big fluctuations or changes" in the exchange rate. The dollar peg has come under intense fire from abroad as China's export juggernaut roared back to life, while much of the rest of the global economy remained sluggish and beset by unemployment in the wake of the financial crisis. Just ahead of a G20 summit in Canada, the announcement seemed to be intended to placate critics of China's currency regime. It was welcomed by U.S. Treasury Secretary Timothy Geithner who called for "vigorous implementation" of the change. But China had long said that it would not bow to international pressure over its currency and the central bank went out of its way to dampen expectations for any big yuan rise. "We believe this is a positive gesture, suggesting the yuan will soon resume its appreciation against the dollar," Goldman Sachs economists Yu Song and Helen Qiao said. The news could soothe investor fears of a trade row between the United States and China at a delicate time for the world economy and propel world stocks markets higher on Monday.