Beijing yesterday breathed a sigh of relief and hailed joint United States-Japan intervention to halt the yen's alarming slide, a move many economists said was prompted partly by high-profile protests from mainland officials and the media.
'We are glad to see the exchange rate of the yen is picking up,' Xinhua news agency quoted central bank governor Dai Xianglong saying.
Just hours before the intervention late Wednesday, a senior mainland foreign trade official was quoted by Reuters saying for the first time Beijing might consider devaluing the yuan if the yen continued its fall.
The following day, the China Daily ran a front page story at the request of the official denying making the remarks, indicating the degree of nervousness over the subject.
Foreign Ministry spokesman Zhu Bangzao said Beijing welcomed efforts by Washington and Tokyo to reach a 'common understanding' on the yen.
'This was necessary and we welcome it,' Mr Zhu said.
Mr Dai also reaffirmed the yuan would not be devalued.
