China's yuan bolted to a 21-month high on Monday, suggesting authorities are unshackling the currency from its de facto 23-month-old peg to the dollar after vowing greater flexibility at the weekend.
Global markets celebrated on Monday at the merest hint that China would let its currency appreciate, showing just how badly the Middle Kingdom is needed to drive a recovery in the sagging world economy.
Former Defense Minister Juan Manuel Santos swept to a landslide victory in Colombia's run-off election on Sunday to succeed President Alvaro Uribe as the leader of Washington's top ally in Latin America.
Global markets celebrated on Monday at the merest hint that China would let its currency appreciate, showing just how badly the Middle Kingdom is needed to drive a recovery in the sagging world economy.
Former defense minister Juan Manuel Santos won an easy victory in Colombia's run-off election on Sunday to succeed President Alvaro Uribe as the leader of Washington's top ally in Latin America.
The Australian Dollar has rallied more than one cent this morning after Friday night's close to trade over 0.8800 after the PBOC (People's Bank of China) announced on the weekend that it will make the RMB exchange rate more flexible in the future but will still maintain a trading band of +/-0.5%.
China's signal that it will ease its currency's 23-month-old peg to the dollar will spare the country from U.S. lawmakers' wrath only if it opens the door to significant upward movement in the yuan.
Policymakers in the world's major economies will closely monitor the Chinese yuan this week for signs it is actually moving after Beijing announced it would make its exchange rate more flexible.
The Australian Dollar opens higher this morning and is exchanging at 0.8678. In the offshore session to dollar moved between 0.8580 and 0.8680 as risk appetite returned to the markets.
Belarus said it was sending a delegation to Moscow on Sunday for eleventh-hour emergency talks with Russian gas giant Gazprom after Gazprom threatened to cut supplies over an unresolved price row. Russia has said it will cut 85 percent of gas supplies from Monday to Belarus if its ex-Soviet neighbor fails to pay $192 million in debts to Gazprom --- money Belarus denies it owes.
China will keep the yuan's exchange rate at a basically stable level, the central bank said on Sunday, suggesting that the country's new currency regime will look a lot like the old one.
Tensions in global financial markets stemming from the euro zone's sovereign debt crisis appear to be easing, setting the stage for investors to dip back into risky assets in the second half of this year.
BP is planning to raise $50 billion to cover the cost of the largest oil spill in U.S. history, London's Sunday Times reported without citing sources. The paper said BP planned to raise $10 billion from a bond sale, $20 billion from banks and $20 billion from asset sales over the next two years.
Following are forecasts by bankers and strategists on the level of expected yuan appreciation after China ditched its peg to the U.S. dollar.
Colombians will vote on Sunday in a presidential run-off that former Defense Minister Juan Manuel Santos was expected to win after vowing to continue the incumbent president's policies on security and the economy.
SAIC Motor Corp , China's biggest automaker, said it was planning a private placement of new shares and trading in its stock will be suspended from Monday.
China's announcement that it will resume currency reform made waves globally but caused barely a ripple at home on Sunday, with major newspapers merely reprinting the central bank's statement.
China will gradually make the yuan's exchange rate more flexible, the central bank said on Saturday, indicating that it was ready to break a 23-month-old U.S. dollar peg that has come under intense fire from abroad.
China said on Saturday it would gradually make the yuan more flexible, in a gesture that may deflect foreign criticism at next week's G20 summit but will not quickly yield a big move by its currency.
Supporters of the two candidates in Colombia's presidential run-off flooded the Internet on Saturday with urgent appeals for voters to cast ballots in an election that could suffer from low turnout.
Treasury Secretary Timothy Geithner welcomed China's decision on Saturday to make its yuan exchange rate more flexible, but said the test is how far and how fast they let the currency appreciate.
China on Saturday said it would gradually make the yuan more flexible, in a gesture that may deflect foreign criticism at next week's G20 summit, but will not quickly yield a big move by its currency.
