Updated at 6.48pm: A deputy governor of the People's Bank on Tuesday denied that China was under pressure from the United States to revalue its currency and said that it was increasing the proportion of Euros in its foreign exchange reserves. Guo Shuqing, who is also director of the State Administration of Foreign Exchange Control, told reporters that the US had made no official or private demand to China to revalue the renminbi. Japan has asked China to revalue and other Asian countries want Beijing to do so, to reduce the competitiveness of its exports and prevent it from taking over even more of their manufacturing industries. Speaking after a lunch speech on the introduction of the Euro, Mr Guo said that US had not asked Beijing to revalue the yuan, which has remained pegged at about 8.3 to the US dollar for the last eight years. 'In that time, our currency has had a de facto appreciation of 40 per cent against the dollar and 26 per cent against other currencies are substantial amounts. After we enter the World Trade Organisation (WTO), our trade surplus will fall, putting downward pressure on the yuan, '' he said. Mr Guo added that increased inflow of capital would put upward pressure on the yuan. ''We will pay close attention to the exchange rate. It will be set by the market,' he said.