General Forex News

GYEONGJU, South Korea (Reuters) - Finance leaders from the Group of 20 economies will pledge on Saturday to commit themselves to pursue market-determined exchange rates and refrain from "competitive devaluation" of their currencies, a U.S. official said. A communique to be issued at the conclusion of G20 finance ministers' and central bank governors' meeting here will state: "We're all committed to moving toward market determined exchange rates that reflect underlying fundamentals and refrain from competitive devaluation," said the official, who spoke on condition of anonymity. (Reporting by David Lawder; Editing by Tomasz Janowski)

-- Krishna Kumar is a Reuters FX analyst. The views expressed are his own -- By Krishna Kumar SYDNEY, Oct 24 (Reuters) - The G20 meeting of finance chiefs was definitely what the doctor ordered to relieve concerns that the so-called currency war was spiralling out of control. All the participants have left with a sense of satisfaction, perhaps surprising even the most hardened sceptics. Risky assets should benefit, and look to play gains in Asian currencies against the dollar at first and then the euro later on. The meeting has conjured up some concrete measures: reforms in the IMF, stronger language emphasising "market determined" exchange rates and vows against competitive devaluations all while laying the groundwork for more concrete targets on current account balances at the final G20 summit. The breakthrough on the vexed question of power sharing in the IMF is very significant. The developing nations will definitely realise that enhanced power goes hand in hand with added responsibility, resulting in them sharing in...

BEIJING, Oct 24 (Reuters) - U.S. Treasury Secretary Timothy Geithner on Sunday discussed economic ties with Chinese Vice Premier Wang Qishan in a brief meeting in eastern China. Geithner and Wang, who are designated as special representatives of their respective presidents on U.S.-China economic issues, met at Qingdao airport, a stop-off for Geithner after Group of 20 meetings in South Korea. "The two sides exchanged views on U.S.-China economic relations and the preparation for the (G20) Leaders' Summit in Seoul," according to a statement emailed by the U.S. embassy in Beijing. It did not elaborate. The airport meeting in China came at the end of Geithner's trip to the Group of 20 finance ministers and central bank governors meetings in Gyeongju, South Korea, where officials agreed to refrain from competitive currency devaluations and reduce current account imbalances.  The United States has been pressuring China to allow its yuan to rise more rapidly in response to market forces. Last week, Geithner delayed a semi-annual report to U.S....

Oct 24 (Reuters) - The Group of 20 major economies vowed to avoid competitive currency devaluations and shifted more power to emerging economies at the IMF, taking steps that analysts viewed as important for averting trade wars and promoting flexible exchange rates. Following is a summary of reserves reports issued by analysts about the G20 communique and outcomes following the gathering of finance ministers and central bankers.  --------------------------------------------------------- THOMAS STOLPER, CHIEF CURRENCY STRATEGIST, GOLDMAN SACHS, LONDON "The outcome of the G20 meeting clearly shows progress in the global rebalancing policy debate. In particular the FX relevant sections have become a lot more prominent and all the key issues have found some mention, including current account positions, protectionism, capital controls and exchange rate flexibility. "At the same time, this is not a Plaza-style statement that signals a broad agreement on the role currencies have to play in the global rebalancing. Just taking the first sentence of the FX bullet, the language is not tight enough to...

(Reuters) - Several U.S. lenders including JPMorgan Chase and Bank of America, and their legal advisers, have started talks with state attorneys general to resolve a probe of foreclosure practices, the Wall Street Journal said. Executives and lawyers of JPMorgan and Bank of America have separately met with the Florida Attorney General last week, the Journal said, citing people familiar with the matter. JPMorgan and Bank of America could not immediately be reached for comment by Reuters outside regular U.S. business hours. All 50 U.S. states have started a joint investigation of the mortgage industry, focusing on allegations that for years banks have not reviewed documents properly or have submitted false statements to evict delinquent borrowers. (Reporting by Sakthi Prasad in Bangalore; Editing by Dhara Ranasinghe)

Dollar appreciated against majors after the housing data rose unexpectedly for the fifth-straight month, along with remarks from the US Treasury that the US will seek to restore investors’ confidence with a stronger dollar. The US treasury Secretary Timothy Geithner stated that the world’s reserve currency will remain strong while adding that it’s not in the best interest of nations to devalue the currency. The dollar sank over the past few months on remarks from the Federal Reserve Chairman; Ben Bernanke for the possibility of providing markets with another round of stimulus measures, offsetting the gains acquired by the dollar and forced a downside trend to prevail in markets. The dollar rose in today’s trading session as China’s interest rate increased, discouraging investor’s demand for risk and causing the dollar to extend its gains against majors. The US dollar index, which tracks the performance of the dollar against majors ascended on the daily scale to trade at 77.89, compared with the opening levels of...

 GYEONGJU, South Korea (Reuters) - Treasury Secretary Timothy Geithner suggested that he sees no reason for the dollar to sink further against the euro and the yen, saying these major currencies are "roughly in alignment," the Wall Street Journal reported on Thursday. In an interview with the newspaper, Geithner also emphasized that the United States was not pursuing a deliberate policy of devaluing the dollar. This echoed comments he made on Monday in Palo Alto, California, saying "No country around the world can devalue its way to prosperity." In the Journal interview, he referred to three groups of currencies. In one, he put countries with currencies "undervalued by any measure" and in the second he put emerging economies with flexible exchange rates that intervene or impose taxes to try to reduce risks. "In the third group, he put "the major currencies, which are roughly in alignment now," a suggestion that he sees no need for the dollar to sink more than it already has...