China faces currency issues beyond US dollar

The renminbi's steep fall against the dollar, which has caused investors so much mayhem, has obscured its relative strength against the currencies of some of China's trading partners.

Since the start of September, shortly after the People's Bank of China shocked the market by adjusting to a more flexible policy, the renminbi has fallen by more than 5 per cent against the dollar.

China's second-biggest trading partner, after the US, is the eurozone and for the same period the renminbi is broadly unchanged against the euro.

While the renminbi has weakened modestly against the Australian dollar since September, the broader trend is renminbi appreciation against its regional trading partner — by 8 per cent over the past 12 months. ...

... For the remainder of the report:

http://www.ft.com/cms/s/0/0cdcca0c-b620-11e5-...82b43f6b2f.html