Dollar Little Changed As Geithner Urges G20 To Cap Surpluses
The dollar was steady near a yearly low Friday morning in New York, after U.S. Treasury Secretary Timothy Geithner called on G20 nations to ease currency tensions.
In a letter to other finance ministers obtained by Bloomberg, Geithner asked G20 nations to promise "to refrain from exchange rate policies designed to achieve competitive advantage by either weakening their currency or preventing appreciation of under-valued currency."
His remarks are seen as directed toward China, which has until recently kept its currency locked in an artificially weak position relative to the dollar in order to prop up its exports.
Nations should reduce their trade imbalances "below a specified share" of their economic size, he argued.
Australia has reportedly called the US proposals "constructive."
With no first-tier economic data on tap from the US today, focus will turn to South Korea for more headlines from the G20 finance mininsters meeting.
The dollar was stuck in neutral versus the euro, holding at $1.3950 in early dealing. Earlier in October, the dollar hit an 8-month low of 1.4125, but has stabilized over the past week.
An indicator of sentiment at German businesses rose unexpectedly in October, with firms surprisingly turning more optimistic over future prospects.
Reports said the Ifo business climate index rose to 107.6 from 106.8 in September. Economists had forecast the indicator to fall to 106.5.
The buck firmed to $1.5660 against the sterling, and held steady at Y81.20 versus the yen. The dollar hit a fresh 15-year low of Y80.83 earlier this week.