Trade] China's yuan gains against dollar | BBC

According to analysts at Capital Economics, the real reason behind the move may be political rather than economic.

"The timing is clever," they said in a note to investors.

"By changing the peg well in advance of President Hu Jintao's visit to Washington in September, Beijing may be able to avoid giving the impression of bowing too obviously to US pressure, while still doing the bare minimum necessary to defuse trade tensions."