From the New York Times:
China’s government allowed the country’s currency to rise in value past the level of 7.9 to the dollar for the first time today, reaching another in a series of daily highs.
Though it has not said so publicly, the government evidently has decided to permit the currency, considered around the world to be artificially low in value, to appreciate much faster than before. Known as the yuan or renminbi, the Chinese currency has posted daily gains far more often than losses since last month, and has climbing 0.8 percent against the dollar so far in September, equivalent to an annual rate of 10 percent.
That compares with an annual pace of 2 percent to 2.5 percent during most of the months since China revalued the currency upward by 2.1 percent on July 21, 2005.[Full Text]