The Group of Seven countries on Thursday agreed to intervene to reduce the value of the Japanese yen, which has surged to record levels after last week's earthquake and tsunami. A strong yen could cripple the country's exports and further damage its economy.
One would think that with the Mideast crisis, oil prices skyrocketing and U.S. manufacturing rebounding smartly, the buck would be flying high. But no. Why that's so may lie in international perceptions about where interest rates are heading.
After years of exhorting China to increase the value of its yuan, the currency is finally rising. Why that's so is the result of the Fed's quantitative easing program. Here's how Bernanke managed to succeed where political wrangling fell short.
As crude prices keep inching upward, the threat to both the U.S. and global economy is clear. While OPEC says don't blame us, the Interational Energy Agencys says: "This is a wake-up call to the oil-consuming countries and to the oil producers."
China's foreign-exchange reserves jumped by a record 7.5% during the fourth quarter, increasing concerns over the country's inflation, The New York Times reported Tuesday.
Foreign capital flowing into emerging markets can be dangerous, but it also has its benefits. Developing countries need to protect themselves against the risks while profiting from the dangers. But how? Here are three things they need to do.
The nation%u2019s manufacturing recovery accelerated in October as factory output jumped 0.5%, the Federal Reserve said. Overall industrial output was flat in the month, but the typical autumn plunge in utilities output skewed the top-line stat lower.
The G-20 has a second chance to diffuse exchange-rate tensions Friday and Saturday, when finance ministers and central bank governors meet in South Korea. World leaders failed to resolve the currency issue two weeks ago in Washington.
Toyota may build another factory in Mexico to produce small cars as the world's largest automaker shifts more capacity outside Japan to remain competitive. The yen's strength on world markets is said to be prompting the move.
The threat of a global currency war is heating up after global leaders failed to resolve their differences at International Monetary Fund talks that ended Saturday.
Investors take note: Despite the calls for order, national policymakers are dealing with an increasingly haphazard scenario loaded with counterproductive results and unintended consequences. The result could be a slide toward protectionism.
A bill, passed by the U.S. House of Representatives Wednesday, would let U.S. companies petition for duties on Chinese imports -- a move that would hurt the global economy if it became law, the Chinese government said.
With its economy growing rapidly even as much of the developed world struggles, tensions are mounting. China has recently crossed Japan and India, in addition to ongoing conflicts with the U.S. Fairly or not, China is being singled out as currency manipulator.
Countries from Japan to Brazil and Mexico to Malaysia are trying to intervene in currency markets to alter the value of their currency. The widespread dependence on exports is the prime reason for these moves, which can be tricky and even backfire.