Fuck, I Hate Being Right Sometimes

Dollar sags as China

scraps currency peg

By Gertrude Chavez
Reuters Link
Thursday, July 21, 2005; 11:58 AM

NEW YORK (Reuters) - The dollar slumped against the yen in heavy trading on Thursday after China abandoned its dollar peg in favor of a basket of currencies to manage the yuan.

The yen's rise accelerated and other Asian currencies firmed after Malaysia said it has changed the ringgit peg to a managed float, fueling further gains in the Japanese currency.


Traders had expected the Hong Kong Monetary Authority and Monetary Authority of Singapore to revise their currency regime as well. However, both said on Thursday that they are maintaining their current foreign exchange policy.

In late morning trade, the dollar fell 2 percent against the yen to 110.65 yen, after declining as low as 110.18 after the Chinese foreign exchange announcement. Before the announcement, it was trading at around 112.40.

Continues...Link above

--Guess what, in the long term China has the goods to play this game, WE DO NOT. They are letting the yen rise and after calling in US debt we will be financially RUINED as a nation. They've been planning this all along. And georgies been helping them with his disasterous policies . Spend it while it's worth something.---