The Yuan Remains the Same

Asian stocks have been hit over the past three days amid fears that China might give in to pressure from the U.S. and revalue its currency. A revalued yuan would likely rally vs. the dollar, hurting the competitiveness of Chinese exports, thus diminishing that nation's economic growth and demand for its neighbors' wares.

It's not going to happen.

"There is negligible risk of a [yuan] revaluation anytime soon, if ever," Morgan Stanley analyst Stephen Jen wrote from Taiwan last week. ...