China Revalues Its Yuan

There are articles abound regarding China's revaluation of the Yuan: Financial Times China ends renminbi's decade-old peg to dollar; Wall Street Journal China Drops Yuan's Dollar Peg, Will Let Currency Float in Band; and New York Times China Floats Free From the Dollar. The Financial Times and Wall Street Journal require paid subscriptions and The New York Times requires free registration.

I am curious to learn if China's initial 2% currency move becomes much larger in the coming months, and I am curious to learn which basket of currencies and in which proportions China decides to use for its peg.

In earlier posts, I discussed commodities. With China's revaluation, it will gain an advantage in purchasing commodities because of the increased value of the Yuan. Thus, I am watching for renewed or continued upward pressure on commodities as China continues to expand its economy.