14th September 2011
Both the dollar and the yen have responded strongly to the announcement by China that it is reluctant to bail out debt-ridden European economies.
Chinese Premier Wen Jiabao said countries relying on China as a last resort must "put their own houses in order" and this sparked increases in forex trading in safe-haven currencies this afternoon (September 14th).
He made his comments when addressing the World Economic Forum, which is being held in the Chinese city of Dalian, arguing that developed nations must draw up responsible fiscal and monetary policies in order to tackle their debts.
Yesterday, Asian currencies were weak against the dollar at the close of trading, with a particular loss for the Taiwanese dollar losing 2.2 per cent in all to close at 29.620.
Furthermore, the Thai baht was down by 0.84 per cent to 30.25, while the Singaporean dollar bucked the trend and saw gains of 0.37 per cent to close at 1.2465.
Posted by Andrew Johnston
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