China revalued its currency last week, allowing it to rise 2.1% against the U.S. dollar. No longer will the yuan exactly track the buck, as it has for nearly a decade--which has kept the yuan's value artificially low and made Chinese goods cheap in the U.S. Here's what it all means:
Why did China change its currency policy?
Politics mostly. China has a huge trade surplus with the U.S., which has Congress threatening tariffs on Chinese imports. But economics played a role too. China's off-the-charts growth would naturally lift its currency in a free market, which China is trying to...
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