The dollar rose for a third day as tension in Ukraine prompted traders to seek refuge in the world’s reserve currency and on speculation Japan may be moving closer to starting another round of economic stimulus.
International Monetary Fund Managing Director Christine Lagarde said China isn’t intentionally weakening its currency and the government’s decision last month to widen the yuan’s trading band reflects an “internationalization” of the currency.
The yuan is poised to recover from declines that have made it Asia’s worst-performing currency as China seeks to prevent an exodus of capital that would threaten economic growth, according to the most accurate forecasters.
Federal Reserve officials should keep global financial stability concerns in mind as they aim at domestic policy goals, even though emerging markets have become better equipped to handle financial volatility, said New York Fed President William Dudley.
The following is a reformatted version of International Monetary Fund staff research released today assessing the real effective exchange-rate, or REER, valuations of 28 countries and the euro area, their currency interventions and reserves. The assessments were made in a report dated June 20 and titled “2013 Pilot External Sector Report -- Individual Economy Assessments.” Click here to find the full report.
Kazakhstan’s central bank devalued the tenge by the most since 2009 as reduced bond buying by the U.S. Federal Reserve sparks capital outflows from emerging markets and the currency of its main trading partner weakens.