Yuan revaluation rumours 'groundless'

Chinese officials poured more icy water on speculation that an imminent revaluation of the yuan was on the cards. A statement from the State Administration of Foreign Exchange (SAFE) said any such belief was groundless and that China would not resort to a one-off revaluation of its currency. The statement was seen as a response to rumours sweeping currency and futures markets in the region. "These rumors are groundless and are a misunderstanding of our country's current exchange rate policy," the statement on the SAFE web site said. "It is impossible to make the unwise move of a one-off revaluation of the renminbi exchange rate," it went on, adding: "One-sided betting on an appreciation of the renminbi can only be a kind of unwise speculative risk."