FT.com / Currencies - Asian currencies withstand Chinese talk

FT.com / Currencies - Asian currencies withstand Chinese talk


Mr. Johnson puts forth the common wisdom regarding the Chinese renminbi revaluation and its effect on the currencies. See link.

"The yen drew support from continuing speculation of a renminbi revaluation by China, a move seen as heralding a period of broad Asian currency strength. . . .

"However, with the yen having already rallied from Y108.80 against the dollar in the past four weeks, Chris Towner, consultant at risk manager HIFX, argued it could be a case of 'buy the rumor, sell the fact.' The yen may have already staged its Chinese revaluation rally and could weaken when Beijing finally moves."

Time will tell, meanwhile last Friday's Commitment of Traders report from the CFTC shows the commercials are long the yen by about 31,000 contracts on the Merc. Moi? I'm sitting on the sidelines until after tomorrow's non-farm payroll report.