Yen trade on revaluation frenzy

Speculation over a yuan revaluation continued to mount as state media reported a surge in yen trading forcing the currency up to a two-month high against the euro and a one-month high against the dollar. Buying Japanese money is a proxy bet on a near-term move by China, China Daily said, noting that investors have raised their yen positions since the US has stepped up pressure on China to revalue.