Dollar Weakening Against China’s Currency

The dollar is depreciating against China’s currency. One dollar buys 6.2267
yuan, one of the lowest levels since China launched a modernized
currency-trading system in 1994. Last week, the U.S. Treasury
Department repeated that China’s currency remains “significantly
undervalued” but declined again to label Beijing a currency manipulator.

(c)wsj

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Comment by Lisa on December 3, 2012 at 4:38pm

Comment by Ron Schelling on December 3, 2012 at 4:58pm: Maybe they are more smart !

Comment by Lisa on December 3, 2012 at 5:15pm: I agree ~ smarter than the average US citizen

Comment by Peter jcp on December 3, 2012 at 10:01pm: Surely that's what the US needs - it now cost more to import from China - ie In 2008 if you were importing some Chinese goods valued at 1000 yuan - it would cost approx 138 US dollars.

Today if those same Chinese goods cost 1000 yuan - then it now costs 161 US dollars - ie it cost more - so should discourage buying chinese goods.

Therefore the US might be encouraged to buy US goods rather than import from China - which seems to have been the argument - ie a large deficit and inbalance.

I appreciate there is a counter argument - but also America's exporters to China - now also receive more money for their goods

To me the Political argument is just "sour grapes" - as China a communist country with cheap labour supply.

That's my view as a Brit - but I am sure it might be contraversial ;-))