The euro moved higher vis-Ã -vis the U.S. dollar today as the single currency tested offers around the US$ 1.4140 level and was supported around the $1.4050 level. The common currency moved higher after the Central Bank of the Russian Federation Deputy Chairman Ulyukayev said the central bank is reducing its holdings of gold and U.S. Treasury bonds in favour of bonds issued by the International Monetary Fund. There is a Sino-Russian movement afoot to develop a new international reserve currency to reduce dependence on the U.S. dollar and this will have a negative impact on the greenback. In eurozone news, German April industrial production was off 1.9% m/m while French industrial production was off 1.4% m/m. Group of Seven finance ministers will convene in Italy later this week to discuss their exit strategies from the ongoing economic and financial crisis. Other data released today saw German May consumer price inflation off 0.1% m/m and flat y/y. European Central Bank member Quaden said eurozone interest rates are at €œappropriate€ levels now, adding the ECB does not need an €œaccommodating€ monetary policy in the long term. Euro bids are cited around the US$ 1.3435 level.
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