Friday, April 29, 2011

Beijing To Battle Stubbornly High Inflation?

I do not do this often, but this took me to the edge today. Media is failing every day in trying to explain the markets, however, today the headlines of Yuan Breaks Past 6.50/Dollar, Further Gains Seen and alike bring me laughing down on the floor, in particular assertions like this:

Beijing will continue to let the currency strengthen quickly to battle stubbornly high inflation.

Focus on US dollar is so misleading, if one considers to look at, e.g., NEER. Click on chart to enlarge, courtesy of Standard Chartered.

The success should be obvious?

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