China tries to cool renminbi speculation
by Brian Turner
China attempted Thursday to cool down talk about the possible revaluation of the renminbi as Jin Renqing, the Chinese finance minister, said in Istanbul that the wide speculation on the subject was making it difficult for China to act on the revaluation.
His comments had very little effect on the currency market, with one analyst saying that there is little doubt that China will have to act on revaluation this year.
The discount on one-year non-deliverable forward contracts in the renminbi remained at 4,750 points, which implied a 5.7 percent revaluation.
Other Asian currencies, which stand to gain if and when the renminbi is revalued, were also undisturbed by Mr. Jin’s comments, although trade was light as many Asian and European markets were on holiday. The yen was up a bit at ¥104.40 in relation to the dollar and at ¥135.05 to the euro.
In other currencies, the dollar changed little in relation to the euro, standing at $1.2934. Sterling was up in relation to the dollar, at $1.9044, and it stood at £0.6792 in relation to the euro.
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