Dollar to be devalued?

Actually it will have no effect on dollar really. The big issue is the dollar is too strong which makes the artificial pegging to the dollar problematic for Yuan cash flow when they can tie it to some of the other (weaker) asian currencies.
 
China has been in trouble with this for a while now. The yuan realistically has been worth a fraction of the price and they're suddenly having trouble getting investment into the country. Without the strong government control on the currency, a lot of money would have exited China by now. A lot of foreign investors are taking a bath at the expense of the Chinese government.
 
Shouldn't have a lot of effect at this point. Having the dollar float more is not such a bad thing. As the others note, the dollar is pretty strong - the dollar to the pound was about 1.40 this week, which is the strongest the dollar has been in a long time.
 
wsuffa said:
Shouldn't have a lot of effect at this point. Having the dollar float more is not such a bad thing. As the others note, the dollar is pretty strong - the dollar to the pound was about 1.40 this week, which is the strongest the dollar has been in a long time.
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Dollar was at 1.36 to the UK pound yesterday which hurts me as having a vacation home in Florida to manage I'm transfering pounds across the water pretty regular
 
wsuffa said:
Shouldn't have a lot of effect at this point. Having the dollar float more is not such a bad thing. As the others note, the dollar is pretty strong - the dollar to the pound was about 1.40 this week, which is the strongest the dollar has been in a long time.
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The dollar has always floated. It's the yuan that has been pegged.

Relative value of currencies is an indicator of the economic activity generated by those currencies. China has not been generating as much activity recently so the yuan should have already declined but the government artificially kept it up. Now that they're releasing the pressure a little, I'd expect to see strong downward pressure on the yuan. They know this too and are doing things to prevent the losses from being realized - such as restricting how much currency you can trade and requiring a higher than market value trade for outside currencies.

One bit of good news, this is finally exposing the Chinese economy for the sham many have believed it to be. They've been running it as a Ponzi scheme and they're hitting the point of running out of options.
 
I'd think decoupling the yuan from the dollar could actually boost the dollar, although that has some negatives, too.
 
Dollar and euro are close to equal now, Dollar to Sterling is about $1.40 per pound sterling - good time for anyone going to Europe and the UK at the moment.
 
Canadians on my recent vacation trip were not too happy about their timing to come to the States for vacation. For the flip side of things. They're getting about $0.70 for their bucks here right now.

I don't get why their currency is floundering right now though. Nothing structurally changed did it really? Or did I miss something dumb their central banks did?
 
denverpilot said:
Canadians on my recent vacation trip were not too happy about their timing to come to the States for vacation. For the flip side of things. They're getting about $0.70 for their bucks here right now.

I don't get why their currency is floundering right now though. Nothing structurally changed did it really? Or did I miss something dumb their central banks did?
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http://www.investopedia.com/articles/investing/021315/how-why-oil-impacts-canadian-dollar-cad.asp

Canada exports a lot of oil, relative to other products, and much of that is to the US. Oil is also generally priced in US dollars.
 
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