The dollar continued to surge for second day in a row as
finance ministers meet at the Group of 20 to find amicable solutions to what is
widely perceived as currency wars.
The Dollar Index grew less than 0.1 percent, but still
improved its position after seeing major slumps in the last few days. The
greenback rose 0.3 percent to trade at $1.3883 per euro and climbed 0.2 percent
against the pound to trade at $1.5670 at 10 a.m.
in London. The euro saw a dip of 0.3
percent to trade at 112.87 yen; the dollar, however, did not see much movement
at 81.27 yen, after dropping to 80.99 yen earlier.
G-20 meeting is expected to see a number of heated
discussion and pitches by finance ministers but the consensus remains that
there will be an agreement where members would refrain from “competitive
undervaluation” of their respective currencies. U.S. Treasury Secretary Timothy
F. Geithner has already proposed G-20 members to reduce trade imbalances “below
a specified share” of their economies though it is not known how many members
agree with his proposal.
futures oscillated after the S&P 500 closed up 0.2 percent yesterday given
better earnings from EBay Inc. to McDonald’s Corp. The MSCI Asia Pacific Index added
0.1 percent thus beating a five-day retreat.
The MSCI Emerging Markets Index dipped 0.4 percent thus
continuing with its first weekly drop since August.
U.S Treasuries did not see much movement and are set for a
weekly gain, with the 10-year note yield at 2.54 percent. The 30-year bond
yield trended two basis points lower at 3.93 percent at 7 a.m. in New York.