Global stock and foreign exchange markets were fast out of the blocks to lead the applause for China's decision to free the exchange rate of the renminbi. Clearly licking their lips at the prospect of greater foreign access to China's fabled market of 1.3 billion consumers, stock markets in Japan and Asia leaped by 2.5 to 3 percent, Europe and the United States followed, while the 12-month forward rate of China's currency against the dollar was at 6.62, implying a 3 percent appreciation. (This compares with 25 percent by which advocates of renminbi appreciation believe the currency is undervalued.)
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