CHINA

China pulled back the veil on its new currency regime a little further on Tuesday, appearing to engineer a fall in the yuan to make clear its vow of flexibility did not include one-way bets for appreciation.

China's yuan jumped on Tuesday to its highest level since the currency was revalued in 2005 as the central bank signaled it would tolerate yet further gains to make good on its vow for more foreign exchange flexibility.

Asian markets waited with bated breath Tuesday to see how far Beijing would go in allowing its currency to strengthen, a litmus test of just how flexible the Chinese authorities are prepared to be to meet U.S. demands.

China's signal it will let its yuan currency appreciate is good news for global manufacturers and resource companies that supply the world's third-biggest economy with the equipment and commodities it needs to fuel growth.

Commodity currencies rallied on Friday, with the Aussie advancing to a new monthly high reaching 0.8712 USD.

China's surprise move to relax currency controls ahead of this weekend's G20 summit buoyed global markets and sent the yuan to a five-year peak on Monday, but caution returned as analysts questioned how far Beijing's new currency flexibility would go.

Stocks once again succumbed to late-day selling in light trading on Monday as hopes China's newfound dedication to yuan flexibility turned to doubts about the speed and magnitude of Beijing's intentions.

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Stocks rose on Monday but were off early highs as investors digested China's vow to allow a flexible yuan currency.

China's yuan hit a five-year peak on Monday after Beijing suddenly relaxed controls ahead of this weekend's G20 summit, sparking stock gains around the world and questions about just how far China's new currency flexibility would go.

China's yuan surged to a five-year peak on Monday, sending stocks higher across the globe as Beijing signaled ahead of this weekend's G20 summit that it would deliver on pledges of greater currency flexibility.

Stocks rose on Monday as China's vow to allow a flexible yuan currency reassured investors about the global recovery and improved the profit outlook for many U.S. multinational companies.

Caterpillar Inc (CAT.N), the U.S. machinery giant that sells billions of dollars of earth-moving equipment and other products to China each year, said on Saturday it was heartened by China's move to gradually make the yuan more flexible, saying it would help lift U.S. exports.

Stocks rose on Monday but were off their session highs as China's vow to allow a flexible yuan invigorated optimism in the global recovery and raised the sales outlook for U.S. multinational companies.

Leaders of some of the Group of 20 nations meeting in Canada this weekend will want to hear more about how China plans to make its currency more flexible, Canadian Finance Minister Jim Flaherty said on Monday.

The Australian and New Zealand dollars rose to their highest levels in about a month on Monday after China let the yuan rise to a five-year high,raising optimism about global economic recovery.

Canadian Finance Minister Jim Flaherty said on Monday that China's decision over the weekend to give its yuan currency more flexibility was quite encouraging

China's move to allow greater currency flexibility will raise pressure on exports in the short term, but will be good for competitiveness in the long run, state media on Monday quoted a Commerce Ministry official as saying.

Rio Tinto and BHP Billiton moved closer to a $116 billion iron ore joint venture after the Western Australia government approved the plan in return for payment of higher mining royalties, a deal that undermines Prime Minister Kevin Rudd's planned mining super tax.

Stocks climbed on Monday as China's vow to allow a flexible yuan invigorated optimism in the global recovery and raised the outlook for sales in the long term at U.S. multinationals.

Financial market stress eased further on Monday as investors cheered Beijing's vow to make its currency more flexible, but interbank euro funding costs rose again with excess money market liquidity set to drop.