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Some See the Hand of China in Recent Yen, Euro Rallies
WSJ ^ | 08/07/10 | TOM LAURICELLA And ALEX FRANGOS

Posted on 08/08/2010 6:05:45 AM PDT by TigerLikesRooster

Some See the Hand of China in Recent Yen, Euro Rallies

By TOM LAURICELLA And ALEX FRANGOS

After a big surge through the first five months of the year, the dollar has slumped against the euro and yen, with many traders pointing to softer U.S. economic growth and stabilization in Europe as the catalyst.

In currency markets, the buzz among traders is that there is another factor at work, too: China.

In recent months, traders believe, China has stepped up its buying of yen- and euro-based investments. This is likely because it is trying to diversify its $2.5 trillion of currency reserves away from holdings of U.S. Treasurys, some analysts say.

Perhaps not coincidently, some say, such a move would have the effect of pushing up the currencies of economic competitors, helping to keep Chinese exports priced competitively in the world markets.

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; Foreign Affairs; News/Current Events
KEYWORDS: china; euro; lowinterest; yen

1 posted on 08/08/2010 6:05:50 AM PDT by TigerLikesRooster
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To: TigerLikesRooster; PAR35; AndyJackson; Thane_Banquo; nicksaunt; MadLibDisease; happygrl; ...

P!


2 posted on 08/08/2010 6:06:20 AM PDT by TigerLikesRooster (The way to crush the bourgeois is to grind them between the millstones of taxation and inflation)
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To: TigerLikesRooster
Seems like the only person left in the world who still believes the US economy is on the right track is Paul Krugman The Nobel Laureate...
3 posted on 08/08/2010 6:12:47 AM PDT by April Lexington (Study the constitution so you know what they are taking away!)
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To: TigerLikesRooster
Wow. You know its getting bad when you can't even fool the Chinese...
4 posted on 08/08/2010 6:13:31 AM PDT by April Lexington (Study the constitution so you know what they are taking away!)
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To: TigerLikesRooster

So, the Chicaps are stabilizing the world markets for debt and currency by carefully exerting and releasing pressure to maximize their own well being.

The capitalists in China are regulating the indiscreet actions of the socialists in America and Europe

It makes you :) at the irony


5 posted on 08/08/2010 6:24:01 AM PDT by bert (K.E. N.P. N.C. +12 ..... Greetings Jacques. The revolution is coming)
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To: TigerLikesRooster

Just trading in those soon-to-be-worthless pictures of dead presidents for something that has value.


6 posted on 08/08/2010 6:52:32 AM PDT by jiggyboy (Ten per cent of poll respondents are either lying or insane)
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To: jiggyboy
This means things will go hot(militarily) in Mid-East and E. Asia. We are fast approaching the time where crises will be no longer confined to financial markets.
7 posted on 08/08/2010 6:59:50 AM PDT by TigerLikesRooster (The way to crush the bourgeois is to grind them between the millstones of taxation and inflation)
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To: bert
...the Chicaps are stabilizing the world markets for debt and currency by carefully exerting and releasing pressure to maximize their own well being. The capitalists in China are regulating the indiscreet actions of the socialists in America and Europe It makes you :) at the irony

It'd be easier to smile if we weren't the fools in your accurate description...

8 posted on 08/08/2010 10:07:31 AM PDT by GOPJ (Asked for ZIP? Give 82224 - Lost Springs,Wy - most sparsely populated in country. Freeper:SamAdams)
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To: TigerLikesRooster

Yes unfortunately the U.S might well start multiple wars to get out of debt.


9 posted on 08/09/2010 9:25:01 AM PDT by artaxerces
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To: jiggyboy
Just trading in those soon-to-be-worthless pictures of dead presidents for something that has value.

The Euro and the Yen? Seriously?
10 posted on 08/11/2010 4:00:53 AM PDT by Kozak (USA 7/4/1776 to 1/20/2009 Reqiescat in Pace)
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