Water Cooler

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Posted by Rob Doorack on February 6, 2006 at 10:46:20:
China dropped the dollar / yuan linkage last July and began setting the yuan's value against a group of currencies including the yen and euro in addition to the US dollar. The chief of China's central bank said last week that the dollar was less than half of the reference currency basket. According to article on the Bloomberg news wire today experts predict that this means that the yuan will be more volatile against the dollar in the future.