Posted March 22, 2010
Chinese officials warn of US lawmaker noise regarding currency valuation. The euro sees a rebound and the Canadian dollar performs well.
China states that "too much noise" coming from United States lawmakers in regards to China's yuan is not helpful when it comes to economic policy discussions occurring between the two countries, says the central bank governor, Zhou Ziaochuan. He added that the two countries can talk about the policy changes needed to determine what is good for both country's but it obviously does not like the "noise" coming from the States.
In the last few weeks, U.S. policy makers and President Obama have made calls on China to allow its currency to appreciate against the dollar. If the U.S. wants to label China a manipulator, this would allow for U.S. lawmakers to push harder for action on the country. Some in the Senate have pushed legislation that would place tariffs and penalties on any nation that would not address the misaligned currency issues. The U.S. must decide by April 15th if it will label the country a manipulator which would start the legal process.
Canadian Versus the US Dollar
In other news, the Canadian dollar ended at a lower level on Monday evening, which is a move away from the trading occurring previously. The US dollar was able to extend on the rebound it had against the Canadian dollar that began in Friday trading.
As of the end of the day, the US dollar was at C $1.0203, which was down from the C $1.0219 that it stood at earlier in the day. On Friday, the Canadian currency was at C $1.0163. The US dollar was able to move as high as C $1.0243 in early morning trading. That level is the highest it has been at since March 12th.
The movement of the US dollar was due to investors moving towards more risky investments today. This includes stocks, commodities, and other currencies that posed a risk sensitive aspect.
Across the pound, the Euro started a rebound on Monday trading, after three weeks of falling behind. The euro was able to return to the level it held on Friday trading. The improvement of the euro was due in part to the movement of currency traders towards more risky investments. And, US stocks advanced, positioning more confidence.
The euro fell to $1.3463 mid Monday morning, which was through the $1.3500 mark. That is the lowest level it has been at since March 2nd, which is when the European Union did not address the problem with Greece debt, which in turn turned the euro downward.
However, that downward movement was not lasting. Rather, the euro did move into positive territory throughout the Monday day trading. By late day, the euro stood at $1.3519 which is down from the $1.3535 it was at. It was at Y121.67 from a point of Y122.47. The US dollar, on the other hand, stood at Y90.04, which was down from the Y90.50 it was at on Friday trading. Further, the US dollar stood at CHF 1.0596 from the CHF 1.0610. In addition, the pound moved from $1.5016 to $1.5054 for the day.