Home Economy Powell’s Dollar, China’s Problem – WSJ

Powell’s Dollar, China’s Problem – WSJ

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dado ruvic/Reuters

Remember the dollar?

Jerome Powell

and his colleagues at the Federal Reserve generally prefer to forget about it, but other countries don’t have that luxury. Witness the growing problems created by a strengthening Chinese yuan—or, rather, a weakening dollar.

The yuan this week hit a three-year high versus the dollar, at around 6.38. This caps a year of steady yuan appreciation and is prompting Beijing to act to manage the exchange rate before China’s currency strengthens further.

Regulators on…

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