As you’ve no doubt already read, China has announced that the yuan will no longer be fixed at 8.277 to the dollar, revaluating it to 8.11. They also announced that the fixed peg will now be more flexible, allowing flotation within a band of about 0.3 percent. Whether that band is fixed or will crawl isn’t clear. The move seems popular:
China’s long-awaited decision to allow its currency to strengthen was greeted with widespread praise from its main trading partners in Southeast Asia and the Pacific, signaling a diplomatic triumph for Beijing despite the mixed economic consequences the move will bring to the region. [IHT]
Malaysia followed suit:
Malaysia’s announcement, made less than an hour after China said it would abandon its dollar peg, suggested that the Malaysian authorities had been waiting for the Chinese government to act before allowing the ringgit to float and reacted immediately in order to avoid a buildup of speculative pressure. [IHT]
Daniel Drezner has a link-rich post with details.