September 27th, 2007
Compared to the Euro, USD is now worth peanuts (70 Euro cents), having set a string of record lows this week.
One interesting effect of this rapid downfall of greenback is this:
1 EUR is now worth 10.58 RMB. While earlier, 1 EUR was about 7 RMB.
So, Chinese Yuan has fallen further in Euros, without either RMB or EUR being responsible for this change. That is of course, due to the fact that RMB is pegged to USD, which has fallen against EUR.
So, while the falling USD may or may not help the competitiveness of US exports, I am sure it is definitely helping the competitiveness of Chinese exports to Europe.