Will This be a continuing Trend?

From the Economic Times of India:



 SHANGHAI: China's yuan was steady against the dollar on Wednesday as an abundance of dollar supply offset a slightly weaker central bank midpoint, traders said.

Spot yuan traded at 6.0955 per dollar near midday, up 0.02 percent from Tuesday's close of 6.0968, after the PBOC fixed its midpoint at 6.1475, slightly weaker than Tuesday's close of 6.1447.

The People's Bank of China (PBOC) has set a slew of weaker midpoints recently, guiding the Chinese currency away from the string of all-time highs touched in mid-October. The dollar/yuan exchange rate is permitted to rise or fall by as much as 1 percent from the midpoint each day.

Read the whole article here:  http://economictimes.indiatimes.com/markets/forex/chinas-yuan-steady-vs-dollar-stability-seen-in-near-term/articleshow/25302930.cms

Like I mentioned in a prior post, as the U.S. dollar continues to devalue due to inflationary policies by the Federal Reserve, foreign countries that hold dollar reserves in order to purchase oil and other global commodities will being to advocate for an alternative.

As some point out, it might actually end up being the Chinese Yuan:

http://www.businessweek.com/globalbiz/content/may2009/gb20090522_665312.htm

Chinese food for thought.