China's Credit-Tightening Moves Could Boost the Dollar and Yen

China's decision to rein in credit may help to strengthen both the yen and the dollar as investors look to avoid risk. The chairman of China's Banking Regulatory Commission, Liu Mingkang, said last week that he expects new yuan lending in 2010 to be around 7.5 trillion yuan ($1.1 trillion). That's down from 9.59 trillion yuan ($1.4 trillion) in 2009, but still more the double the 2008 level.