Prime Minister Junichiro Koizumi said Friday a revaluation of the yuan would be desirable for China, a day after U.S. President George W. Bush urged China to conduct further reform of its exchange-rate regime.
"I think it will benefit China in various ways in the future," Koizumi told reporters.
In a Thursday meeting with Bush in Washington, Chinese President Hu Jintao pledged to advance reform of his nation's exchange-rate regime, while Bush urged further appreciation of the currency.
Beijing removed the yuan from a tight peg to the dollar last July, linking it to a basket of foreign currencies instead.
While the yuan has risen about 3 percent since then, critics say the rise is too small and China still enjoys unfair trade advantages.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.