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A hasty yuan revaluation could result in domestic deflation and several rounds of international currency adjustments, an influential Chinese newspaper warned Wednesday.

An article carried in the overseas edition of the People's Daily reinforced recent remarks by Premier Wen Jiabao that China would not change its tightly controlled currency regime with undue haste.

A country's currency was a closely watched economic indicator, and "it can be said that pulling a single hair can move the whole body," said Li Daokui, the author of the opinion piece, using a Chinese idiom.

The article didn't give Li's title or affiliation. A change in the yuan's exchange rate would have an impact on China's consumer price index, the article said.

"Overall, a yuan appreciation will lead to certain deflationary pressures," the article said.

Based on expectations for a yuan revaluation, foreign capital had entered the domestic real estate sector, said the article. Should those expectations be met, a portion of that capital would leave, causing fluctuations in housing prices in some cities, it said.

It also said rampant speculation made international markets for raw materials more volatile. Foreign exchange adjustments gave those speculators that "stir fry" prices in those markets added expectations for further adjustments, and fueled price volatility, it said.

International economic power, or perceptions of it, could shift as a result of a change in the yuan exchange rate, the article said, suggesting that the assessment of China's economy could change based on official foreign exchange-based price calculations.