Peg is dead as China vows yuan flexibility before G20
BEIJING/WASHINGTON, June 19 (Reuters) - China said on Saturday it would gradually make the yuan more flexible, in a gesture that may deflect foreign criticism at next week's G20 summit but will not quickly yield a big move by its currency.
U.S. President Barack Obama, who prodded China over the yuan in a letter released on Friday, welcomed the news in an indication the danger of a market-roiling confrontation at the Group of 20 meeting in Canada had eased.
BEIJING/WASHINGTON, June 19 (Reuters) - China said on Saturday it would gradually make the yuan more flexible, in a gesture that may deflect foreign criticism at next week's G20 summit but will not quickly yield a big move by its currency.
U.S. President Barack Obama, who prodded China over the yuan in a letter released on Friday, welcomed the news in an indication the danger of a market-roiling confrontation at the Group of 20 meeting in Canada had eased.
Yuan will not necessarily rise, China media warn
BEIJING, June 21 (Reuters) - China's pledge to reform the yuan does not necessarily mean that the currency will strengthen against the dollar, state media reported on Monday, citing Chinese economists.
The People's Daily, the official newspaper of the ruling Communist Party, said the yuan would float both up and down against the dollar and that one-way appreciation was not the thrust of the reform.
BEIJING, June 21 (Reuters) - China's pledge to reform the yuan does not necessarily mean that the currency will strengthen against the dollar, state media reported on Monday, citing Chinese economists.
The People's Daily, the official newspaper of the ruling Communist Party, said the yuan would float both up and down against the dollar and that one-way appreciation was not the thrust of the reform.
More flexible yuan mildly bullish for commodities
CHICAGO, June 19 (Reuters) - China's move to make its yuan currency more flexible should be mildly bullish for many commodities, boosting China's purchasing power and possibly increasing its imports of copper, iron ore and chicken.
Although China made clear on Saturday that a one-off step change in the rate similar to 2005 wasn't in the cards, analysts expect the yuan to slowly rise, adding to its nearly 20 percent gain since its last revaluation in 2005.
CHICAGO, June 19 (Reuters) - China's move to make its yuan currency more flexible should be mildly bullish for many commodities, boosting China's purchasing power and possibly increasing its imports of copper, iron ore and chicken.
Although China made clear on Saturday that a one-off step change in the rate similar to 2005 wasn't in the cards, analysts expect the yuan to slowly rise, adding to its nearly 20 percent gain since its last revaluation in 2005.
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