Until recently, the increase in China’s economic weighting manifested on the currency markets primarily through the impact the country’s economy had on commodity prices. The trend in the renminbi itself had relatively little impact on the other currencies because the renminbi was extremely stable and closely pegged to the dollar. That said, recent monetary reforms changed the game in a big way.
The new Chinese currency regime led the currency markets into a new paradigm. The slightest fluctuations in the renminbi have a greater impact on trends in emerging market currencies than on developed currencies.