China Says It Will Increase Yuan’s Flexibility…

BY ANDREW BATSON

BEIJING—China’s central bank moved Saturday to head off resurgent international criticism of its currency policies with a pledge to make its tightly controlled exchange rate more flexible, a surprise announcement that was quickly welcomed by the U.S. and others even though the central bank also ruled out a big rise in the yuan.

The People’s Bank of China statement, issued on its website, didn’t announce any specific changes to the exchange-rate regime. But it was seen as a clear signal that China will let the yuan resume a gradual rise against the U.S. currency—possibly as soon as Monday—after nearly two …

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