The Mexican peso advanced today as China pledged to boost its economic growth, reducing the negative impact of the crisis in Europe and increasing demand for riskier currencies with higher yield.

The Chinese yuan gained today, before retreating below opening level, after the central bank set the reference rate higher and the head of China said that the government will take measures to boost economic growth of the country.

Once again, the euro is struggling in Forex trading. It isn’t much of a surprise, really, since the eurozone is still operating in debt crisis mode. Since last week, not much has changed. Greece is still on the verge of withdrawal from the 17-nation currency region, and Spain and Italy continue to teeter on the edge of their own full-blown crises. Even the promise of a growth agenda in the eurozone can’t help the euro.

US dollar index is starting out another week stronger, thanks in large part to difficulties plaguing the eurozone. While the Facebook IPO last week distracted Forex traders and investors from the crisis in the eurozone for a short period of time, focus is back on Europe, and what’s happening (or not happening).

The Canadian dollar had a pretty bad week as talks about the European debt crisis plagued the Forex market, driving traders away from riskier commodity currencies.

The Chilean peso rose even after Chile’s central bank refrained from increasing interest rates. Good prospects for the nation’s economy and possibility of an interest rate hike in the future may be responsible for the currency’s gains.

The euro reached the lowest level in four months against the US dollar and the lowest in three months versus the Japanese yen today on fears that the European crisis is escalating. The currency was higher on the day though.

UK pound is being helped on two fronts today. General risk appetite, with the focus on the Facebook IPO, is helping the sterling against the US dollar. On the other hand, pound is higher against the euro, as concerns about what’s happening in the eurozone make the pound a preferred choice as a European safe haven currency.

US dollar is lower today as risk appetite makes an appearance in the markets. As commodity prices rise, and equities see a bit of a reprieve from recent troubles, the greenback is pulling back. Concerns about Europe remain, but they are being trumped by other news — especially the imminent Facebook IPO.

The Brazilian real rose today, but stayed near the 2 per dollar level as the impact of the European crisis on currencies of emerging markets sapped strength of the Brazilian currency.