From Guardian Unlimited (link):
The world, it seems, wants a dearer yuan. The assumption is that if the yuan strengthens, it would weaken China’s unbeatable export competitiveness, narrow trade deficits, and preserve more jobs at home. Chinese goods would become more expensive, and consumers in Europe, the United States and elsewhere will start buying locally-made products again. If only.
On Monday, China did allow the yuan to strengthen, and the Chinese currency crossed the level of eight to the dollar. This excited currency speculators and traders, who saw this as further sign of weakening of the US dollar. Some manufacturers in the west may have even heaved a collective sigh of relief.