Last week's loosening of the yuan exchange rate may have bought China some diplomatic breathing space, but resolving the underlying problems in global trade is likely to take more than that, dpa quoted experts as saying. The financial markets were enthusiastic when the yuan was unpegged from the dollar on Tuesday. But the widely predicted surge in value failed to materialize, as the yuan sank slightly in the first days of trading after an initial rise. It should be remembered that a floating currency can move "in both directions," Chinese experts said, pointing to the strong dollar or the weak euro. China's critics, who have long pushed for Beijing to relax its grip on its currency, are unlikely to be satisfied in the long run by such a soft approach. But the initiative has earned Chinese President Hu Jintao some breathing room as he arrived in Toronto on Wednesday for the Group of 20 meeting. -- SPA
