Monday, December 26, 2011

Today's Major Market Move: Chinese Yuan Strengthens 4.2% Against the US Dollar in 2011

It may not sound like much, but the 4.2% that the Yuan has strengthened against the US Dollar this year makes it the 3rd best performing currency. Here's the top ten:

Click here to go to the live table.
Here's the 2011 line chart of the USDCNY cross and one can see that the trend has been fairly steady.

Click here to go to the live chart.

One has to wonder how much the improvement in the Yuan has to do with the fact that the U.S. is approaching an election year and all of the associated rhetoric that it brings. It must concern China that Romney, who typically polls in the top 2 or 3, has been the most vocal on Chinese currency manipulation and trade policies.
“I'm afraid that people who've looked at this in the past have been played like a fiddle by the Chinese,” Romney said. “And the Chinese are smiling all the way to the bank, taking our currency and taking our jobs and taking a lot of our future. And I'm not willing to let that happen.” Romney went on to reiterate that he would sign an executive order on his first day in office “identifying China as a currency manipulator” and that he would take that case to the World Trade Organization.

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