yuan exchange rate

Currency Wars: How Ben Bernanke Outsmarted China

After years of exhorting China to increase the value of its yuan, the currency is finally rising: It has appreciated some 3.5% since June while China battles inflation and works to cool its red-hot economy. Here's how the Fed managed to succeed where political wrangling fell short.

A New Way to Bet on China: Open a Renminbi Bank Account

China's economy is booming, and Western nations are increasing their demands that its currency be allowed to rise to its natural value. Who knows if that will happen, but if you want to bet that it will, the Bank of China just made it easier: Now, Americans can open renminbi-denominated accounts.

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.

Dow Dives 178 Points on Fears China May Hike Rates

The Dow tumbled Tuesday 178 points, or 1.6%, to close at 11,024 as part of a global sell-off in stocks fueled by further speculation that China will hike interest rates to fight inflation and renewed worries over the wobbly finances of Ireland, Portugal and Greece.

Diverging Fortunes Create Tension for China, U.S.

The seemingly symbiotic relationship between the China and America -- dubbed Chimerica -- is now clearly chimerical. What was once billed as the ideal partnership is quickly turning into a competition for global influence instead. Investors, beware.

G-20 Leaders Water Down U.S. Stance on Currencies

Leaders of 20 major economies on Friday refused to back a U.S. push to make China boost its currency's value. That will keep alive a dispute that raises fears of a global trade war amid criticism that cheap Chinese exports are costing American jobs.

G-20 Leaders Fail to Back U.S. Plan on Chinese Currency

The leaders of the 20 major economies failed to back a U.S. plan intended to push China to let its currency strengthen. The leaders released a statement in which all countries pledged to avoid "competitive devaluation" of currencies, The Associated Press said.

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.

Asian Markets Are Mixed as Investors Eye U.S. Elections

In Asia on Tuesday, Hong Kong's Hang Seng Index rose 0.1%, China's Shanghai Composite inched down 0.3%. and in Japan, the Nikkei 225 crept up 0.1%. Investors are closely monitoring the U.S. midterm elections, with many predicting that if the Democrats lose their majorities in both the House and the Senate, the dollar will continue to slide.

As the Dollar Weakens, Commodities Shine

Market watchers lately have loudly proclaimed the end of the dollar, which has left investors looking to stay ahead with a choice of betting on stocks, which have 17% fallen in the last decade, or staying "safe" in very low-yield money market funds. But there is an alternative: Commodities.

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.

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.

August Trade Gap Grows Due to Oil, Chinese Imports

The U.S. trade deficit unexpectedly jumped to $46.3 billion in August, as the nation%u2019s deficit with China surged to a record $28 billion -- pushing overall imports up 2.1%, while overall exports rose just 0.2%. Oil prices were the other key culprit as our petroleum deficit surged 5.7%.

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.

There Are No Quick Fixes
for the U.S. Economy

With elections near and joblessness still so high, Congress and even the Fed are chasing short-term solutions that won't really help matters. More finely targets policies would be effective, but don't expect any until, with luck, after Nov. 2.

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.

George Soros: No Doubt About a Slowdown

A widespread push for fiscal discipline is "the right policy at the wrong time," said famed investor George Soros at a Wednesday morning Q&A. He fears it will further depress a world economy already suffering from the blahs.

Geithner: China Should Let Yuan Appreciate Faster

Treasury Secretary Timothy Geithner said that China should let its yuan currency appreciate faster to demonstrate that the country is willing to follow through on promises to its trading partners. "Frankly they haven%u2019t let the currency move very much so far," Geithner told Bloomberg News. "They know they%u2019re just at the beginning of that process and I think we%u2019d like to see them move more quickly."

The Outcry Over China's Export Boom

China's global trade surplus ballooned to $28.7 billion in July, a sign that promises to adjust its currency haven't yet begun to bite. That could spell increasing friction with Washington, where lawmakers facing reelection in November are raising demands for retaliation.

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.

China Promises More Flexibility on Yuan

China's central bank said it will allow more flexibility in the exchange rate of its currency, the yuan. This seems intended to help foreign economies as China's shows increased strength. Critics have said an undervalued currency gives China an unfair trade advantage.