Such strong price performance amid continued economic weakness is also making some investors wary of commodities.
The announcement pushed commodity prices higher as the rise in the yuan makes commodities priced in other currencies less expensive in China, where demand is voracious.
The government of India is so sure that speculation makes commodities dearer that it has banned the trading of futures contracts for some of them (although not oil).
It also makes commodities denominated in US dollars more expensive for Chinese buyers, which could hurt demand and thus further depress commodity prices.
A weak dollar makes commodities more attractive to foreign investors.
A strong dollar makes commodities and shares of the companies that produce them less attractive to foreign buyers.
A dearer US currency makes commodities more expensive for dollar holders, helping to undermine the sector, while investors are also unsetteld by some mixed signals from China.
A strong dollar makes commodities priced in dollars, like gold and oil, more expensive for foreign investors, pressuring shares of energy and basic materials companies.
When it falls, the dollar makes commodities cheaper for foreign buyers and increase profits for American companies that do business outside the United States.
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