The yen advanced against the USD and EUR after China's Central Bank said it would make the yuan more flexible.
Stronger yuan will inflow import and make the country goods more expensive. This can support China’s economy growth.
The Central bank has also added that the economy growth remains on a level 10% and too much investments can led to inflation.
USD against JPY shows the most significant monthly drops since November 2004 still on speculations FED rates hike led to slow down economy growth.
The U.S. trade deficit reached the record mark $726 bln. last year and policy makers including Charles Schumer, Democrat from New York and Lindsey Graham, Republican of South Carolina, blame China for this.
The USD lost 5% in the past two months against the yen and 6.2% against the EUR.
Decrease can proceed, if today's report on industrial sector in Chicago will show delay. It is expected, that the index in May will fall up to 56.0, against prior data 57.2.
«USD is awful», - says Michael Jansen, National Australia Bank Ltd. «USA economy essentially slow down making weaker USD».
Remind that recent Cons. Confidence became the most disappointing since Katrina hurricane.