Analysts play down yuan revaluation talk

Speculation has increased in recent weeks after Dallas Federal Reserve president Robert McTeer said earlier this month that China should reconsider its dollar peg as its importance in global trade grows. A research report by Goldman Sachs economists further fuelled the speculation, saying that to instigate structural reforms and safeguard financial stability, China should adopt a more flexible exchange rate system.

Yuan implied options volatilities -- which measure expected future spot

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