UN warns of currency war threat

first_img Share Tags: NULL whatsapp WORRIES over the US economy sent the dollar tumbling against most world currencies yesterday, prompting the UN to warn countries against an all-out currency war. The dollar reached $1.41 against the euro and near-parity with the Australian dollar, while a rush to hedge against a weak US dollar sent gold prices to a record high.Weakness in the dollar, the world’s reserve currency, could encourage other nations to devalue to keep their exports cheap by comparison. The fall came as the US revealed that its trade deficit widened 8.8 per cent to $46.4bn (£29bn) in August, driven by a record level of Chinese imports. The Chinese yuan then reached 6.65 against the dollar, its strongest closing level since July 2005. The new high fuels US arguments that China is unfairly keeping its currency cheap to support its exports abroad. The UN warned yesterday that any instability in the currency market has the potential to wreck the fragile recovery of global trade.“We have seen recently fluctuations of major currencies in a significant manner. There is a danger of a currency war,” said James Zhan of the UN’s trade body. Traders have flocked to sell the dollar since Tuesday, when the US Federal Reserve gave a strong indication that it was prepared to restart quantitative easing to kickstart the flagging economy. by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryNoteabley25 Funny Notes Written By StrangersNoteableyTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBemoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comMagellan TimesThis Is Why The Roy Rogers Museum Has Been Closed For GoodMagellan Times KCS-content Thursday 14 October 2010 9:49 pmcenter_img whatsapp UN warns of currency war threat Show Comments ▼ Read This NextRicky Schroder Calls Foo Fighters’ Dave Grohl ‘Ignorant Punk’ forThe WrapCNN’s Brian Stelter Draws Criticism for Asking Jen Psaki: ‘What Does theThe WrapDid Donald Trump Wear His Pants Backwards? Kriss Kross Memes Have AlreadyThe WrapHarvey Weinstein to Be Extradited to California to Face Sexual AssaultThe Wrap’Sex and the City’ Sequel Series at HBO Max Adds 4 More ReturningThe WrapPink Floyd’s Roger Waters Denies Zuckerberg’s Request to Use Song in Ad:The Wrap’The View’: Meghan McCain Calls VP Kamala Harris a ‘Moron’ for BorderThe WrapNewsmax Rejected Matt Gaetz When Congressman ‘Reached Out’ for a JobThe Wrap2 HFPA Members Resign Citing a Culture of ‘Corruption and Verbal Abuse’The Wraplast_img read more

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