The volatility has been dizzying in recent weeks in markets on both sides of the Pacific.

In the wake of the totally predictable decision from the Federal Reserve not to raise interest rates, hedge funds with consensus trades involving bullish US dollar bets and bearish positions in virtually everything else, including energy, basic materials and emerging market currencies, had their worst week in a while. For example, the Indonesian rupiah, shorthand for every disappointing commodity-based emerging market economy, shot up 9 per cent before the cynicism about the prospects of emerging markets returned in the middle of last week.

Meanwhile, the renminbi remained stable. To some this was a sign that the People’s Bank of China was spending dwindling reserves on supporting the currency after changing the way the exchange rate is set back in August. That change, which was a move toward a more market oriented way of setting the rate, indirectly led to a 2 per cent drop in the value of the renminbi against the dollar.