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Press The Rise of the Chinese Yuan Causes Other Asian Currencies
to Rise as Well   Wednesday, 09 February 2011 06:11  The WSJ
reported that the Chinese yuan rose sharply against the dollar
today and that this increase led to sharp rises in other Asian
currencies as well. Put this one in the "who could have known?"
category.  Many of the economists cited by major news outlets
are undoubtedly surprised by this sequence of events. They have
minimized the importance of a rise in the yuan to the U.S. trade
deficit by insisting that the United States would simple turn to
other producers as a source of imports.  Those who understand
the economy pointed out that other Asian currencies tend to
follow the yuan, so that a rise in the value of the yuan would
likely also lead to a rise in the value of other currencies
against the dollar. This means that the rise in the yuan is
likely to reduce U.S.