FXStreet (Delhi) – Research Team at Goldman Sachs, suggests that there are many reasons to advocate a switch to a trade weighted basket for the RMB. Key Quotes “Such a shift means $/CNY fixing higher, which could reignite market fears of another step devaluation. Such fears have the potential to weigh on currencies in nonJapan Asia (NJA), where depreciation pressure in August became acute.” “Depreciation pressure this summer was in some cases stronger than in 2013, showing how important RMB stability is for the region. As our emerging market strategy team has argued, rising China uncertainty could weigh on currencies in NJA, not to mention risk appetite globally. With uncertainty around the RMB potentially rising, our best advice to the Fed is to “hike and like,” rather than repeat the September playbook, which only added to global uncertainty.” For more information, read our latest forex news.