market pulse
May 31, 2011, 5:49 a.m. EDT
SocGen sees yuan revaluation in fourth quarter
By Chris Oliver
HONG KONG (MarketWatch) -- China is likely to revalue its currency in single move in the fourth quarter, lifting the value of the yuan by about 5% against the U.S. dollar, according to research released Tuesday by Societe Generale. The French bank said reforms to China's currency were "unavoidable" as Beijing grapples with problematic inflation and a policy framework based on quantitative tightening that's lost its punch in containing prices. SocGen said Beijing faced four potential policy directions. But a one-off revaluation, it said, along with a widening of the yuan's daily trading band to allow faster appreciation and more complexity in its movements, was likely to find the most appeal among policymakers.
May 31, 2011, 5:49 a.m. EDT
SocGen sees yuan revaluation in fourth quarter
By Chris Oliver
HONG KONG (MarketWatch) -- China is likely to revalue its currency in single move in the fourth quarter, lifting the value of the yuan by about 5% against the U.S. dollar, according to research released Tuesday by Societe Generale. The French bank said reforms to China's currency were "unavoidable" as Beijing grapples with problematic inflation and a policy framework based on quantitative tightening that's lost its punch in containing prices. SocGen said Beijing faced four potential policy directions. But a one-off revaluation, it said, along with a widening of the yuan's daily trading band to allow faster appreciation and more complexity in its movements, was likely to find the most appeal among policymakers.