F. Hale Stewart is a financial adviser with Thompson Creek Wealth and a transactional attorney, specialising in asset protection and advanced tax planning.
The chart above shows that the dollar rallied about 10% versus the yuan over the last 3 years. There are two reasons for this move. First, as U.S. economic activity started to increase, so did the possibility of the Federal Reserve increasing interest rates -- an event that is dollar positive. Second, over the same period, the Chinese economy started to weaken (relatively speaking) which places downward pressure on the yuan.