A stronger Chinese currency is in the worlds interest, according to Robert Feldman, head of economic research at Morgan Stanley in Tokyo.
Strengthening the currency would produce a stable or fair and economically correct spectrum, or vector of exchange rates for the Asian region, Feldman said in a Bloomberg Surveillance radio interview today with Tom Keene. They have an obligation, even to their own people, to keep growth going, to raise living standards.
A stronger yuan, or renminbi, as the currency is also known, would benefit Chinese consumers and Japanese consumer goods makers by allowing them to penetrate further into the Chinese market, which is a natural development given the high Chinese growth, Feldman said.
Japans yen traded stronger than 83 per U.S. dollar, reaching a 15-year high against the greenback today after Japanese Prime Minister Naoto Kan beat his rival Ichiro Ozawa in a party vote, reducing the likelihood the government will take steps to weaken the currency. (Source: Daniel Kruger and Tom Keene, Bloomberg.com, Sep 14, 2010).