Nomura’s Kan Sees Yuan Appreciation in May, Says Yen May Weaken
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China may allow the yuan to appreciate as early as next month as inflation accelerates, a move that may also weaken the yen, according to Nomura Institute of Capital Markets Research.
China is likely to let the yuan rise 5 percent per year against the dollar, said Shiyu Kan, a Tokyo-based senior fellow at the research unit of Japan’s biggest brokerage, reiterating a call he made in February. China may double the currency’s trading band to 1 percent, or allow an immediate 3 percent rise in its daily reference rate, he said.