Yuan Dive?

Since December, when the US Federal Reserve began tapering its monthly purchases of long-term assets, emerging-market currencies have fallen across the board, with the Chinese renminbi recently joining the trend. But when it comes to the renminbi's exchange rate, the People's Bank of China, not the Fed, calls the tune.

BERKELEY – Since December, when the US Federal Reserve began tapering its monthly purchases of long-term assets, emerging-market currencies have fallen across the board.

The main exception, until recently, was China’s indomitable renminbi. But now the renminbi, too, has been falling against the dollar. So is this more evidence of the disruptive impact of the Fed’s policy?

The renminbi’s decline is not large, and whether it will continue is uncertain. But the movement is striking by the standards of what is still a heavily managed currency. And it is in the opposite direction from what everyone has come to expect.

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