The dollar rose against the yen, departing from a one-month low against the Japanese currency. The move was prompted by the comments from Wei Benhua, Chinese deputy director of the State Administration of Foreign Exchange, who said China will leave the yuan’s peg of 8.28 to the dollar unchanged in the ``short term.’’ China has already indicated that it is not likely to revalue its currency when expectations of speculators are high. Yen rose on massive purchases connected to bets on China’s quick currency revaluation.

"The latest China-related moves appear to be speculative and not long-lasting. It’s not based on fundamentals," said Kikuko Takeda, a currency strategist at Bank of Tokyo-Mitsubishi.

China is Japan’s most important trading partner.

``It seems every time there’s a revaluation comment, you get a denial,’’ said Robert Rennie, a foreign-exchange strategist in Sydney at Westpac Banking Corp. ``This could take some of the bloom off the yen.’’

Dollar has also risen against the euro, as the yen remained at a higher level against the European currency. Today’s report is expected to show a drop in business confidence in Germany that remains the largest economy in the EU.

Weighing on the dollar is the expectation of a slowdown in the US economic growth that will be evident from a government report due on April 28 that will indicate the annual growth rate in the first quarter of 2005. Another report that is due soon if the confidence index for April computed by the Conference Board, a New York-based research group, due to be released by April 26.

On Monday the dollar rose to 106.10 yen from 105.75 yen late Friday. The euro fell to $1.2975 from  $1.3050.