Yen Gains as China Imposes Conditions on Help to Europe

The Japanese yen advanced today against most major currencies as China set conditions for their aid to the indebted nations of the European Union.
China’s Premier Minister Wen Jiabao said developed nations should cut their budget deficits and concentrate on job creation, instead of hoping China can bailout the whole world economy. Wen stated:

Countries must first put their own houses in order.

He added the Asian nation can offer “a helping hand” to the Western nations, but Europe and the US should open their market for investments.
The yen surged on the news, but weakened afterwards and now trades below the opening level against the euro.
USD/JPY fell from 76.92 to 76.80 today as of 10:57 GMT. EUR/JPY rose to 105.43, above the opening level of 105.23, after it earlier slipped to 104.54.

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