Currencies

Dollar Rises as Stocks Drop on Outlook for China, Reducing Demand for Risk The dollar rose against most of its major counterparts as stocks dropped on concern China will seek to damp economic growth after inflation accelerated to a 16- month high, reducing demand for higher-yielding assets.

Dollar to Keep Reserve Role If Markets Stay Sound, Standard & Poor's Says The dollar will retain its status as the world’s reserve currency as long as U.S. financial markets are sound and government spending is sustainable, Standard & Poor’s said.

Global Currency Trading Rises 17% to $2.7 Trillion a Day, RBA Report Shows Global currency trading rose to $2.7 trillion a day between April and October, the first growth since the six months to April 2008, the Reserve Bank of Australia said, citing data from five markets.

Trade Deficit in U.S. Probably Widened for Third Month as Imports Climbed The U.S. trade deficit probably widened in January for a third month as imports grew faster than exports, pointing to a rebound in global economic growth, economists said before a report today.

El-Erian Says World Economy May Face Disruptive Sovereign Debt Imbalances Mohamed A. El-Erian, whose company runs the world’s biggest mutual fund, said deteriorating public finances may affect the global economy more than is currently realized.

Senate Negotiations Said to Advance on Consumer Division Powers, Oversight Senate negotiators closed in on a deal for strengthening consumer financial protections, giving bank regulators a role in rule-making and enforcement, two Democratic Senate aides briefed on the talks said.

Brazil, Colombia, Peru, Mexico: Latin American Bond and Currency Preview The following events and economic reports may influence trading in Latin American local bonds and currencies today. Bond yields and exchange rates are from the previous day’s session.

Feldstein Says Euro's Declines Are a Result of `Panic Selling' Over Greece Harvard University Professor Martin Feldstein said the euro’s 4.6 percent decline against the dollar this year has been “panic selling” stemming from the financial crisis in Greece.

British Pound Strengthens Against Dollar, Euro After BOE Inflation Survey The pound strengthened, snapping a three-day decline against the dollar and the euro, after U.K. inflation expectations climbed to the highest since November 2008, fueling speculation interest rates may rise.

Swiss Central Bank Maintains Key Rate Near Zero, Repeats Stance on Franc The Swiss central bank left its benchmark interest rate near zero and reiterated its readiness to sell the franc if needed to keep a lid on the currency.

Goldman Sachs Lowers Forecasts for Euro on Growth, Pound on U.K. Election Goldman Sachs Group Inc. cut its forecasts for the euro against Norway’s krone, the Swiss franc, the Swedish krona and Polish zloty, citing an “increasing focus on growth differentiation.”