Renminbi revaluation speculations continue

Renminbi revaluation speculations continue

Story link: Renminbi revaluation speculations continue

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Chinese finance minister Jin Renqing said in Istanbul on Thursday that all the talk about the revaluation of the renminbi was making it very difficult for China to embark on such a course.

This attempt to put a halt to speculation about if or when the Chinese currency will be revalued as the rest of the world is urging it to do had little effect on currency markets, especially with most analysts convinced that China will have to act on the issue sometime this year.

At any rate, the discount on one-year non-deliverable forward contracts on the renminbi stood at 4,750 points, implying a revaluation of 5.7 percent.

Mr. Jin’s comments also did not hurt trade in other Asian currencies, which will also benefit with the revaluation of the renminbi.

Even though many Asian and European markets were on holiday Thursday, the yen rose in relation to the dollar to stand at ¥104.40. The yen was also up on the euro, to ¥135.05.

The dollar changed little in relation to the euro, meanwhile, and stood at $1.2934. Sterling rose compared to the dollar, to $1.9044, and it was at £0.6792 compared to the euro.