Recvaluaton of renminbi

Professor Takatoshi Ito wrote an interesting and well-balanced article on Nikkei in Japanese today.

Indeed the RMB was quite steady and there is even a sign of slight weakening of RMB the last couple of days, it is reported. One of my closest friends told me:

AFTER 2 LOW VOLUME DAY DAY, CNY NDF MKT RETURNS TO NORMAL SIZE TURNOVER THIS MORNING. MKT STARTED TO DROP SPECULATION THAT CNY MID RATE WILL MOVE SLIGHTLY EVERYDAY TO STRONGER LVL AND MORE TRADERS ARE CONVINCED 8.1100 MID RATE WILL REMAIN VALID FOR SOME TIME AND EXPOSURE UNWINDING INTEREST THIS MORNING PUSHES HIGHER USD RATE ACROSS THE CURVE, WITH ONE MONTH FWD CLOSING TO PAR LVL IT SEEMS MKT IS INCLINED  TO TRADE ON OUTRIGHT FWD RATE QUOTE BASED NOW, RATHER THAN DISCOUNT BASE.

CNY is for RMB.

To study the movement of renminbi after the last revaluation should be important. Reaction of other currency in East Asia should be important as well.