The U.S. dollar climbed today after a Chinese Foreign Ministry official stated that the believes in the stability of the greenback, and informed that he is unaware of discussions next week during the G8 meeting regarding eventual substitutes for the dollar as the world main reserve currency.
The yen declined to a two-week low against the euro and lost versus several other currencies as a report in China indicated an increase in manufacturing, helping investors to be confident to purchase high-yielding assets throughout the world.
The Australian dollar, often referred as the Aussie, fell for the first time in 5 days against the U.S. dollar and other currencies after China’s comments indicating that the greenback will continue to be the main world reserve currency, damping demand for the Australian dollar high-yielding profile.
The dollar started this week’s session rallying against several main currencies after China stated that it may continue to be used as a main reserve currency, and that the Asian nation won’t change its foreign currency reserves suddenly.
The Dollar ended the week losing against several major currencies after China declared this Friday that a supranational currency should be created for regulating international trade, damping demand for the greenback, which is currently the world main reserve currency.
The Chinese yuan declined at a fastest pace during the last two months as the country’s central bank lowered the reference exchange rate to stimulate the exporting industry.
After the European Central Bank policy makers’ affirmation that rates will be maintained on hold, the euro reached a 7-week high against the dollar.
The South Korean currency has been favored since the beginning of the year by both domestic and international signs of improved economic conditions.
The yen continued the bearish trend which started last week when positive economic news pushed the equities market up, decreasing demand for the low-yielding Japanese currency.
The yen had a week of losses against the euro and the dollar, as the first signs of economic recovery appear in China and in the U.S.
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