currency

Will the Economic Recovery Slide on $90 Oil?

Oil prices, up more than 25% since August, are testing the $90 per barrel level and appear to be headed higher -- into what the International Energy Agency calls 'a dangerous zone' for the global economy.

Currency Wars Are Heating Up Across Latin America

Emerging market countries, especially those in Latin America, are gearing up for a potentially damaging round of currency interventions to help keep their economies competitive. "This is a currency war that is turning into a trade war," says Brazilian Finance Minister Guido Mantega.

A Rising Dollar and Cooling China Will Pop the Commodities Bubble

The dollar is looking mighty attractive, thanks to a reviving U.S. economy and eurozone woes, and it will only get stronger as traders who gambled that it would fall buy dollars to unwind their bad bets. Add in China's desperate need to get its overheated economy in check, and commodities prices look like they have nowhere to go but down.

How Emerging Markets Can Avoid Getting Burned by Hot Money

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.

S&P May Downgrade Portugal's Credit Rating

Portugal's credit rating may be on its way down. Standard & Poor's warned Tuesday that a downgrade may be coming based on the government's failure to create policies that will boost productivity and cut the country's deficit.

Why Asian Nations Hate QE2, and What They Should Do

As the G-20 meets in South Korea, many world leaders have stepped up their complaints about the Fed's $600 billion quantitative easing program, as well as the rapid flow of capital into emerging markets. Some countries are installing capital controls in response, but those won't be enough, says global finance expert Peter Cohan.

Palin Says Bernanke Should 'Cease and Desist'

Sarah Palin, former governor of Alaska, commented on the Federal Reserve%u2019s plan to buy $600 billion of long-term assets, saying that Fed Chairman Ben Bernanke should "cease and desist." "We shouldn't be playing around with inflation," Palin said in remarks prepared for a Monday speech in Phoenix, according to Reuters.

G-20 Leaders Criticize Fed's $600 Billion QE2 Stimulus

The U.S. finds itself on the wrong side of the currency manipulation argument this week, as many G20 countries criticize the Fed's $600 billion bond buying plan, which could further devalue the dollar. World leaders say the move breaks the vow of unity made during the last G-20 summit.

China, Germany Criticize U.S. Quantitative Easing

China and Germany, the world%u2019s second-largest and fourth-largest economies respectively, expressed concern about Federal Reserve plans to pump $600 billion into the U.S. economy. The Fed announced plans to buy $600 billion of assets earlier this week. The Fed hopes that the move, known as quantitative easing, will help boost the U.S. economy and lower unemployment.

Australia Raises Interest Rates to Control Inflation

Australia raised interest rates in a bid to control inflation amid an export boom. The country%u2019s Reserve Bank raised rates to 4.75 % from 4.5%, surprising most analysts, The Associated Press reported.

Gas Prices Jump by a Nickel as Oil Rises

The average price of gasoline rose by just over a nickel in the last two weeks, as rising crude prices hit consumers. The average price of self-serve regular gasoline was $2.82 a gallon on Friday, according to the latest Lundberg Survey. That%u2019s 5.23 cents higher than two weeks earlier.

Can G-20 Prevent a Currency War?

The G-20 has a second chance to diffuse world currency tensions Friday and Saturday, when finance ministers and central bank governors meet in South Korea.

China Hikes Rates, and the World Stumbles

China surprised international markets Tuesday by raising key interest rates for the first time in three years. The action, taken primarily for domestic reasons, caused a worldwide sell-off driven by the worry that it could cause the Chinese economy to slow down.

China Raises Interest Rates For First Time Since 2007

China hiked its interest rates for the first time since 2007 in a bid to combat rising inflation. The People%u2019s Bank of China raised its one-year deposit rate to 2.5% from 2.25%, while the lending rate rose to 5.56% from 5.31%, Bloomberg News said.

Geithner: U.S. Won't Devalue the Dollar to Boost Exports

The U.S. will not weaken the dollar in order to boost its exports, Treasury Secretary Timothy Geithner promised. "It is not going to happen in this country," Geithner told Silicon Valley business leaders of devaluing the dollar, according to Reuters.

Will Toyota Build a Second Mexico Plant as Yen Surges?

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.

Buffett Warns That Euro Faces a 'Real Challenge'

The euro has posted its biggest quarterly gain in eight years, but billionaire investment guru Warren Buffett is worried about Europe's common currency. Despite the E.U.'s trillion-dollar bailout fund, he's not sure the Continent will be able to avert a sovereign debt meltdown.

Geithner Says U.S. Favors Significant Yuan Appreciation

Treasury Secretary Timothy Geithner said the U.S. favors a "gradual, but still significant" appreciation of the yuan. Geithner said the U.S. would prefer China let market forces drive up the value of the currency, The Wall Street Journal said. Geithner noted that the yuan had strengthened by about 2.5% in six weeks.

World Spins Closer to a Currency War

The threat of a global currency war is heating up after global leaders failed to resolve their differences at International Monetary Fund talks, which ended Saturday.

Why Easing the Threat of Currency War Is So Difficult

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.

China Promises Continued Support for Europe

Chinese premier Wen Jiabao said his country will support European bonds and the euro currency. "I have made clear that China supports a stable euro," he said, according to BBC News.

China Warns Against Duties on Imports to U.S.

China denounced a bill passed by the U.S. House of Representatives that aims to push up the value of the Chinese currency. The bill, which would let U.S. companies petition for duties on Chinese imports to compensate for the impact of the weak yuan, would hurt the global economy if it became law, the Chinese government said today.

Safe Haven No More: Swiss Franc Headed for Trouble

The Swiss franc has been the second-best performing major currency over the past six months, outpacing the dollar by 8.9% and the euro by 7.8%, thanks to shaky conditions elsewhere in Europe. But a broad range of signs suggest the Swiss currency is due for at least a short-term correction.

Will the Export Economy Spark a Currency War?

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.

Yuan Hits High Vs. the Dollar as China Nudges Exchange Peg

The Chinese yuan hit a post-revaluation high against the dollar Monday after the People's Bank of China set the yuan's reference rate for trading at its highest level since the central bank began publishing the daily fix in 1994. The yuan can rise or fall 0.5% each day from the reference point.

Ford Sees an Expanding Global Car Market

"We see the economy improving, but the strength of the recovery in individual markets has been uneven," said John Fleming, head of Ford's global manufacturing in London on Thursday. He said demand could rise by as much as 10%.