The Chinese seem not inclined to clown around with the value of the renminbi.
Meanwhile the administration is trying to apply pressure on them to revalue their currency, “which President Obama says is kept at an artificially low level to give China an unfair advantage in selling its exports”.
From the NY Times,
A senior Chinese official said on Thursday that China would not bow to pressure from the United States to revalue its currency … Economists say that the Chinese currency, the renminbi, is undervalued by 25 to 40 percent compared to the dollar and other currencies.
And do you suppose it’s necessary to have a PhD in economics to figure out what the proper exchange rate should be?
Here is the Rosetta Stone of currency parity, and it comes with fries and a Coke,
Maybe it’s not too late for a Happy Meal.