China’s base interest rate was lowered in December 2008 from 5.58% to 5.31% and has been kept at this level till today. The agressive pace of rate cutting from People’s Bank of China (China’s central bank) is slightly ahead of that of ECB and FED. In addition, the magnitude is much wider: The rate spread between PBOC and FED, for example, has widened from 1.14% in March 07 to 5.26% as of today. With Fed’s base rate at 0.25%, it seems that there is not much room for FED to further cut the rate. It is speculated that once there is sign of economic recovery in US, the FED will increase the base rate accordingly, which shall change the down trend of USD.