That fixed peg, which had been in place since 1996, was cancelled abruptly in late July, though the new system adopted by Chinese leaders is far from free-floating But the announcement by the People's Bank of China was accompanied by a slight increase in the yuan's value and a pledge to "move into a managed floating exchange rate regime based on market supply and demand with reference to a basket of currencies
However, I hope this managed float against a narrow basket of currencies
is just the first step in a larger effort that will result in the value of the yuan being completely determined by market forces.
Moreover, with the renminbi's recent modest revaluation and switch to a peg against a basket of currencies
instead of the U.
dollar and instead allowed it to trade against a basket of currencies
Three - in the medium-term - peg it against a much bigger basket of currencies
to better reflect its value.
Sterling also hit four-week highs against the euro and two-month highs against a trade-weighted basket of currencies
Then, late in European trading on Friday, May 17, Sweden' s Riksbank announced that it would link the Swedish krona to the European currency unit (ECU), replacing its trade-weighted basket of currencies
, in which the dollar carried the largest weight, with a basket composed entirely of European Community currencies.
In addition, the British newspaper The Independent reported that certain Gulf states met with Russia, China, Japan, and France to discuss replacing the dollar with a basket of currencies
, including gold, to trade crude oil.
The dollar was broadly stronger, reaching a four-year high against a basket of currencies
, a six-year peak against the yen and a 13-month high against the New Zealand dollar.
The dollar was up for a fifth straight day to trade near its highest in almost two weeks against a basket of currencies
The dollar has lost value against a basket of currencies
Treasury yields rose and the dollar was bought across the board (against a basket of currencies
including the yen), and this trend has continued" through Tokyo market trading, Tanase said.