Currency war

The US Federal Reserve' s quantitative easing can lead to asset bubbles as the money goes in search of equity, property and other such assets in a low-interest rate scenario, said Kaushik Basu, chief economic advisor to India's finance minister.

U.S. employment fell for a third straight month in August, but the drop was far less than expected and private hiring surprised on the upside, easing pressure on the Federal Reserve to prop up economic growth.

U.S. employment fell for a third straight month in August, but the drop was far less than expected and private hiring surprised on the upside, easing pressure on the Federal Reserve to prop up economic growth.

The dollar slid towards a recent seven-month low versus the yen on Thursday after Federal Reserve Chairman Ben Bernanke expressed concern about the U.S. economy but steered clear of hinting about further easing as some had hoped. The euro, which lost sharply after his comments sparked outflows from stocks and other risk assets, held steady at lower levels ahead of Europe's bank stress test results on Friday.

The dollar slid towards a recent seven-month low versus the yen on Thursday after Federal Reserve Chairman Ben Bernanke expressed concern about the U.S. economy but steered clear of hinting about further easing as some had hoped.

Investors should take data showing currency speculators started to bet against the U.S. dollar this month for the first time since March with a big grain of salt. While the turnaround in positioning from long to short on the dollar shows that sentiment on the U.S. currency has deteriorated sharply, analysts say it should not be interpreted as a sign the greenback is about to collapse.

How much would the U.S. economy have to weaken for the Federal Reserve to try to push borrowing costs even lower?

U.S. President Barack Obama on Wednesday maintained pressure on China to ensure its currency policy did not give it an unfair export advantage.

The global economy is recovering faster than expected from recession with Asia leading the way, but it is at risk from huge debts in developed countries and possible overheating in countries such as China, the OECD said on Wednesday.

Persuading Beijing to let its yuan currency rise in value is not simply an issue for the United States but one that should interest the whole world, Treasury Secretary Timothy Geithner said on Wednesday.

China might see increased foreign exchange inflows this year as expectations of yuan appreciation mount, the State Administration of Foreign Exchange said on Monday.

PITTSBURGH, March 31 (Reuters) - U.S. Treasury Secretary Timothy Geithner expressed confidence on Wednesday that China will decide it is in its interest to make its yuan currency more flexible, but did not say when that might happen.

China will probably run a trade deficit of more than $8 billion in March, state media said on Tuesday, citing Premier Wen Jiabao.

The Federal Reserve should shift quantitative easing policies based on the U.S. economy's evolution, in the same way those changes guide interest rate policy, a top Fed official said on Thursday.

Beijing is likely to let its currency begin rising in value again this year in response to growing pressures at home and abroad, two U.S. private sector specialists on China said on Wednesday.

China could be about to allow its currency to strengthen by as much as 5 percent to slow down the country's fast-growing economy