currency

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%.

Euro-Zone Countries Should Be Ready to Cut Debt, ECB Says

Euro-zone countries should prepare to implement more measures aimed at cutting "excessive deficits" if economic growth disappoints, the European Central Bank said. The 16 members of the euro-zone should "be prepared to accelerate consolidation where necessary to correct their excessive deficits," the ECB said, according to The Wall Street Journal. "If previously overly optimistic macroeconomic forecasts fail to materialize, countries should swiftly adopt additional consolidation measures to ensure that commitments are fulfilled."

Gold Takes a Breather After Record High

Gold is wavering Wednesday after closing at a record high in the previous session. Prices have risen sharply over the past three weeks as the euro has come under pressure.

Fed Asks Court to Delay Release of Bank Bailout Documents

The Federal Reserve Board asked an appeal court to delay the court-ordered release of documents that would identify banks that might have failed without support from the U.S. government. The Fed asked the U.S. Court of Appeals in New York to delay the release while it consults with the Department of Justice about a possible appeal to the U.S. Supreme Court, Bloomberg News reported.

Bank of Japan Mulls Action on Rising Yen

The yen eased down a bit on Wednesday from the 15-year and nine-year highs it set Tuesday against the dollar and the euro respectively, with the market watching for possible intervention from Tokyo to curb the currency's rise, which threatens Japan's fragile economic recovery.

U.S. Mint to Launch $1 James Buchanan Coin

The U.S. mint will launch a $1 coin commemorating President James Buchanan, the 15th president of the United States. The coin will show Buchanan%u2019s portrait with the inscription "JAMES BUCHANAN, IN GOD WE TRUST, 15TH PRESIDENT" and "1857-1861", the U.S. Mint said in a statement. The reverse will show a rendition of the Statue of Liberty with the inscription "UNITED STATES OF AMERICA."

Venezuela's Chavez Bans Private Brokerages From Trading Currency

Venezuela%u2019s President Hugo Chavez signed a law Tuesday that bans private brokerages from trading the country%u2019s bolivar currency or public sector dollar-denominated debt. The bill, which had been approved by parliament and only required the president%u2019s signature, restricts brokerages to trading local stocks and securities issued by the private sector, Reuters reported.

Yen Reaches 15-Year High Against the U.S. Dollar

The Japanese yen hit a 15-year high against the U.S dollar on Wednesday after the Federal Reserve lowered its assessment of the U.S. economy and said it will reinvest some bond holdings. The yen has strengthened 11% against the dollar since May, raising the possibility that Japanese authorities may intervene to weaken the currency, The Wall Street Journal reported. The yen generally strengthens during periods of economic uncertainty because investors view it as a safe haven.

S&P Keeps U.K. Sovereign Debt Rating at AAA

Standard & Poor's Ratings Services affirmed Engand's sovereign credit ratings Monday, but said its outlook remains negative. The pound sterling slipped against the dollar on the news, as S&P's outlook has been negative since May 2009.

U.S. Says Yuan Undervalued; China Not Manipulating Currency

A report from the U.S. Treasury Department avoided naming China as a currency manipulator, saying instead that the yuan is "undervalued." The report said that the recent Chinese decision to end the peg to the dollar was a "significant step," and pledged to monitor the Chinese currency in the next three months, Bloomberg News reported.

German Lower House Passes Bill to Ban Naked Short-Selling

German lawmakers in the lower house of parliament passed a bill banning naked short-selling of eurozone government bonds, credit default swaps based on those bonds and stocks in German companies. The bill aims to counter volatility of the euro currency, Bloomberg BusinessWeek reported.

China's Currency Move Means Hard Decisions Ahead

If you think China's decision to unpeg its currency from the U.S. dollar was a good move for both countries, Gary Shilling says don't believe it. The economist who saw the subprime crisis coming warms that the move isn't what it appears to be, and says it will have a number of unintended consequences.

Ahead of G-20, Obama Pushes 'Balanced' Approach

G-20Next week, the G-20 summit will get under way in Toronto, but political posturing and grandstanding among the nations has already begun. In a letter to G-20 leaders, President Barack Obama says, "We must act together to strengthen the recovery."

Three Stocks Set to Gain Strength on Euro Weakness

As European markets sell off indiscriminately, there are bargain stocks to be found. We screened for beaten-down, big-cap multinationals in the eurozone (trading on U.S. exchanges) that should benefit from currency weakness. Here they are.