If and when the yuan rises against a basket of currencies , China's strategy might be to relatively overweight the euro among the basket of currencies it will peg the yuan to in order to slow the rise of the yuan following an initial rise . This would help support the euro to a certain extent and slow the rise of the yuan at the same time , while reducing the impact of a yuan rise on that part of China's economy in those sectors that are most vulnerable to a rise on it's currency .

It could also reduce the effect and pace of a rise in the US dollar against the euro , all of wich would would help China manage the overall effect on it's exports .

At the same time China might use the expected fall in the euro following a rise in the yuan to accumulate a greater share of euros in it's currencies reserve in the expectation of a rise in the value of the euro further down the road , thus helping China's exports to the euro zone when that occurs .

The dollar is king in among currencies nobility but more then ever subject to manipulation by those contenders to it's supremacy .

Tectol