China revalues Yuan 2.1%

China's central bank last night revalued its currency 2.1% abandoning its decade old peg of 8.28 Yuan to the dollar, allowing a managed float against a basket of currencies and paving the way for further flexibility. The Yuan now stands at 8.11 to the dollar and will trade within a 0.3% band. The long awaited measure doesn't go as far as the 10% revaluation called for by the US, but it will take some heat off China in the increasingly tense trade relations. In the short term, the revaluation will have a limited effect on world trade, but the Yuan could rise 5% by the end of the year, said economists cited by the Wall Street Journal.