Reply #33: Yen Cuts Recent Losses on China Comments

[54anickel]

http://www.reuters.com/newsArticle.jhtml?jsessionid=BP30NFLJIEGYMCRBAELCFFA?type=businessNews&storyID=7433827

LONDON (Reuters) - The yen jumped on Wednesday, retracing some of this week's losses, after China said it would discuss the yuan at an upcoming meeting of the Group of Seven economic powers, rekindling speculation of a yuan revaluation.

A Chinese official said that the country's finance minister would attend next week's G7 meeting in London and that there would be a "deep dialogue" on issues including the yuan.

Asian currencies including the yen have been pushed around by comments on the yuan. The dollar rose 1.5 percent against the yen on Tuesday after the head of China's economic statistics bureau, Li Deshui, suggested it was in no hurry to loosen the tight peg of 8.28 yuan per dollar.

"We've had some conflicting signals in the last 24 hours on China," said Daragh Maher, senior currency strategist at Calyon.


snip>

The market remained skeptical about whether the G7 meeting would herald any immediate action by Beijing after U.S., Japanese and European officials all signaled little change was likely in the previous G7 communique calling for exchange rate flexibility.

Is this like the magician drawing your attention to the other hand? :shrug: