The Japanese yen notched its top advance in more than one week on Tuesday against the world's reserve currency as confidence grew about the yen being in increased demand as the Chinese yuan struggles, according to Bloomberg.
The currency of the Pacific Rim nation climbed against most of its top rivals while the renminbi dipped for a sixth-straight day. The People's Bank of China was poised to be driving toward expanding the monetary unit's trading band.
"The PBOC is engineering the yuan declines, which might mean the central bank wishes to change the perception of the one-way bet on yuan gains," currency analyst Kenix Lai with Bank of East Asia Ltd. in Hong Kong told the media outlet on Tuesday. "It also looks like the PBOC is introducing two-way volatility as it prepares the renminbi for a wider trading band."
Then yen moderately rose 0.1 percent against the U.S. dollar and was moderately changed against the common currency of the European Union.
The yen serves as an indicator for Wall Street traders and analysts who are gauging the denouement of the currency as way of assessing the performance of stocks, according to CNBC.
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