Chinese Yuan News
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Central banks should be careful what they say about the future if they want flexibility to set monetary policy.
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The euro fell against the dollar after European Central Bank President Mario Draghi said policy makers are ready to cut interest rates again if needed after reducing them to a record low last week.
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Nobody asked the German people if they wanted the euro. Now, almost 15 years after Europe introduced its common currency, a new political party has emerged to campaign for a return to the deutsche mark.
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The weakening yen has turned Japan’s annual Golden Week, a string of springtime holidays, into a boon for domestic tourism.
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The Chinese yuan is set to strengthen as rising inflows of speculative capital add to pressure on the currency, the head of a Ministry of Commerce research institute said.
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Hong Kong Monetary Authority can manage inflation risks caused by an appreciating yuan and is committed to its currency’s dollar peg in place since 1983, Chief Executive Norman Chan said.
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Global finance chiefs gave Japan leeway to reflate its stagnant economy by indicating its fresh round of monetary stimulus doesn’t represent an explicit campaign to devalue the yen.
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Group of 20 finance chiefs pledged to stay alert to any fallout from easy monetary policies even as they backed the Bank of Japan’s plan to buy more than 7 trillion yen ($70 billion) a month of bonds.
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Asian stocks rose, paring this week’s losses, as Taiwan Semiconductor Manufacturing Co. led technology shares higher and mining companies rebounded.
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Bank of Japan Governor Haruhiko Kuroda won international endorsement of his stepped-up stimulus push, saying it emboldened him to press ahead with his campaign to defeat 15 years of deflation.
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