Ashraf Laidi Currency Quotations

If China was to completely get rid of its currency peg, and the yuan became completely convertible, it would fall under pressure. It would become another Thai baht.

This does not mean that currency markets have completely eliminated all concerns about the trade deficit when assessing the dollar,

It's good for the U.S. to see a relatively weaker dollar, but it's not a good idea for the U.S. Treasury to signal it wants a weaker dollar. The decline in the U.S. currency could be faster than they wish.