Fed won't take eye off China currency moves: Mester

[LONDON] The Federal Reserve will keep a close eye on China's currency moves and its impact on the global economy and markets, Cleveland Fed President Loretta Mester said on Friday.

"They (China) have said they are going to allow some leeway in the renminbi so we are going keep an eye on that," Ms Mester, a voting Fed member, said at an event hosted in London by the European Economics and Financial Centre (EEFC).

She added the tacit pegging of the renminbi to the US dollar was not influencing the Fed's thinking and policy decisions, though China's impact on the global economy did.

The renminbi, which is still managed by China's central bank, saw its biggest quarterly fall on record between March and June.

REUTERS