Short Term Trading Member Forum

[techcharter]

China to revalue currency

The shift in dialog on the topic of US-Chinese currency exchange rates leaves me with the feeling the Chinese will do something financially to counter act a market driven exchange rate. My hunch is China will sell US treauries for dollars and then convert dollars to RMB. This will drive up interest rates and make it more costly for the US to import goods. Even with a weaker currency, the US depends on oil imports. US manufactured goods will have a rising energy cost component and falling labor cost component. If energy becomes so expensive to US manufacuring, it won't matter what the cost of labor is.



http://www.chron.com/cs/CDA/ssistory.mpl/business/2824893