Business / Markets

RMB trades at lower 12-yen level in 1st direct trading day

(Xinhua) Updated: 2012-06-01 10:09

TOKYO - The Chinese yuan fetched 12.33 Japanese yen in Tokyo foreign exchange market at 9 a.m. local time Friday, the first day for direct yen-yuan trading.

Japanese Finance Minister Jun Azumi announced that yen-yuan direct trading begins form June 1 at the Tokyo and Shanghai markets Tuesday, on a press conference.

The direct yen-yuan trading would reduce the transaction cost and exchange risk in bilateral trading and investment, all Japanese and Chinese companies involving will benefit from the new system.

The trading rate will be determined in different ways in the two sides. In Shanghai, Chinese monetary authorities will released a reference rate every morning. In Tokyo, the exchange rate will be determined by market.

The move is broadly seen as a way to boost trade and investment between the world's second- and third- largest economies, and as part of measures China took to internationalize its currency.

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