The yen rose from an eight-month low against the dollar in Europe after Japan's Finance Minister Sadakazu Tanigaki said he expects China to adopt a more flexible currency before ``too long.'' A change in China's fixed exchange rate would allow the yuan to gain against the dollar, eroding China's export advantage and putting pressure on other Asian currencies to strengthen. ``Given the current state of the Chinese economy, I don't think it will be too long before it happens,'' Tanigaki said today in Tokyo after a Cabinet meeting. ``A gain in the yuan will provide more room for Japan to allow its currency to strengthen because a higher yen won't reduce Japan's export competitiveness,'' said Tokyo-based Akira Takei at Fuji Investment Management Co., which runs about $9 billion. ``Tanigaki's comments suggest China may move soon, maybe in a month or two, helping to boost the yen and other Asian currencies.'' The yen strengthened to 109.29 against the dollar as of 7:58 a.m. in London, from 109.58 late yesterday in New York, according to electronic currency-dealing system EBS. It yesterday dropped to 109.69 per dollar, the weakest since Oct. 15. It was at 132.67 per euro, from 132.70. The yen may rally to 103 per dollar by the end of September, Takei said. Tanigaki told reporters in London on June 11 that China, Japan's biggest trading partner, should ``act decisively'' to make its currency more flexible. The dollar was also weaker before a report today, which is expected to show sales at U.S. retailers fell in May for the first time in eight months. Retail sales declined 0.2 percent, according to the median estimate of 68 economists