Markets rally on yuan policy

Currency strongest in years, impact on global economy 'still unclear'

BEIJING - Stocks worldwide and oil prices rose on Monday after China's central bank pledged to make the yuan more flexible, but analysts said the policy's effect on the Chinese and global economy was still uncertain.

Chinese authorities said on Saturday it would push ahead with the yuan exchange rate mechanism reform, a move that is expected to loosen the currency's two-year-old peg to the US dollar and lead to its gradual appreciation.