24 December 2010
US dollar falls as China backs eurozone nations
NEW YORK: The US dollar lost ground against key currencies on Thursday after China pledged to back eurozone countries struggling with massive debt.
Amid light trade ahead of the Christmas break, the euro slightly rose to 1.3118 dollars at 2130 GMT from 1.3095 dollars late Wednesday.
Against the Japanese currency, the dollar fell to 82.91 yen from 83.55 yen the previous day.
China on Thursday pledged to back debt-ridden European countries as they struggle to avoid bankruptcy following Greece and Ireland, offering optimism amid grave concerns about the future of the eurozone.
"We are ready to support the eurozone countries to overcome the financial crisis and realise economic recovery," foreign ministry spokeswoman Jiang Yu told reporters.
"In the future, the European Union will be one of the major markets for our forex investment," he said.
China has emerged as a key player in the European debt crisis. Beijing has the world's largest foreign exchange reserves at 2.65 trillion dollars, a significant portion of which is invested in the euro.
At the same time, rating firm Fitch slashed Portugal's credit rating over its debt problems, after Moody's warned earlier this week it might take similar action.
"Despite the muted reaction to today's announcement, the news highlights the increased headwinds that the eurozone will face in 2011," said Michael Wright of DailyFX.
In late New York trade, the pound rose to 1.5426 dollars from 1.5382 dollars the previous day.
The dollar however rose to 0.9583 Swiss francs from 0.9520.
http://www.channelnewsasia.com/stories/afp_world_business/view/1100945/1/.html
US dollar falls as China backs eurozone nations
NEW YORK: The US dollar lost ground against key currencies on Thursday after China pledged to back eurozone countries struggling with massive debt.
Amid light trade ahead of the Christmas break, the euro slightly rose to 1.3118 dollars at 2130 GMT from 1.3095 dollars late Wednesday.
Against the Japanese currency, the dollar fell to 82.91 yen from 83.55 yen the previous day.
China on Thursday pledged to back debt-ridden European countries as they struggle to avoid bankruptcy following Greece and Ireland, offering optimism amid grave concerns about the future of the eurozone.
"We are ready to support the eurozone countries to overcome the financial crisis and realise economic recovery," foreign ministry spokeswoman Jiang Yu told reporters.
"In the future, the European Union will be one of the major markets for our forex investment," he said.
China has emerged as a key player in the European debt crisis. Beijing has the world's largest foreign exchange reserves at 2.65 trillion dollars, a significant portion of which is invested in the euro.
At the same time, rating firm Fitch slashed Portugal's credit rating over its debt problems, after Moody's warned earlier this week it might take similar action.
"Despite the muted reaction to today's announcement, the news highlights the increased headwinds that the eurozone will face in 2011," said Michael Wright of DailyFX.
In late New York trade, the pound rose to 1.5426 dollars from 1.5382 dollars the previous day.
The dollar however rose to 0.9583 Swiss francs from 0.9520.
http://www.channelnewsasia.com/stories/afp_world_business/view/1100945/1/.html
