Political pressure on the yuan to the U.S. action. Remnibi soared to record levels on Monday, the eighth consecutive session, as the Chinese authorities seem to be susceptible to political pressure exerted on them, the U.S. and other countries in Asia. At night, the People's Bank of China set the yuan at 6.6997, at a time when Obama said that Chinese leaders "have not done all that was promised." Obama will meet with Chinese Premier Wen Dzyabao on Thursday during the General Assembly of the United Nations in New York. Separately, Malaysia's central bank has signaled that he intends to buy yuan-denominated bonds to replenish its foreign exchange reserves. It is expected that other central banks of Asia will follow him until too late. Interestingly, the strengthening of the yuan provides impetus for the growth of other Asian currencies - Asian dollar index, calculated by Bloomberg and JPMorgan, rose to a two-year peak yesterday. In countries such as India, Indonesia, South Korea and Taiwan, foreign demand for assets has been quite high in recent weeks.
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