Market players are notoriously knee-jerk in their thinking and the recent price action on the dollar (versus the euro), which, incidentally, has spilled over into the cocktail party circuit, is being ascribed to the renewed round of structural fumbling within the European Union, which was triggered by the French "non" to the European constitution back at the end of May. This, together with fresh signs of weakness in some of the major European economies, will …showed first 75 words of 917 total…

…showed last 75 words of 917 total…liability and we hear China screaming in pain, resulting, of course, in a release of the peg. It is hard to estimate what that level would be, although I suspect it may even be parity with the euro (or even stronger). Unless, of course, China, "on its own initiative, of course", recognises what is coming and aborts the process,--say, by the time the dollar rises just above 1.10 to the euro. source: Business Standard paper