Surprise! Today, effective immediately, Malaysia and China have abandoned their currency pegs against the US dollar. Both countries ban offshore trading of the ringgit and yuan respectively, so there wouldn’t be an astronomical appreciation of either currency.

Plus, both countries aren’t allowing a free float, rather they are allowing currencies to move within limited trading bands structured around trade-weighted currency baskets. Malaysia’s central bank Bank Negara has been purchasing dollars en masse to head off an surge for the ringgit.  More here. Updated for clarity

China has announced that it will revalue the Yuan 2.1 percent, institute a new, more flexible exchange regime and peg it to a basket of currencies instead of the US Dollar. 

The NY Times reports:

BEIJING, July 21 - Following months of political pressure, China today revalued the yuan to 8.11 for every dollar, scrapping a decade-long peg to the currency in favor of a more flexible band using a "basket of currencies."

China’s announcement, which has been anticipated and debated by economists and government leaders for months, is the first time in a decade that China has raised the value of its currency, also known as the renminbi, effectively making the yuan and exports more expensive against the United States dollar.

Simon World is on the case and thinks the move will not be substantial enough for those lobbying for the Yuan shift. He also has a link to the People’s Bank’s official press release.