Currencies

Yen, Dollar Strengthen as China Inflation at 16-Month High; Kiwi Weakens The yen and dollar rose versus their major counterparts after Chinese reports on inflation, factories and loans fueled concern the government will act to damp growth, boosting demand for the lowest-yielding currencies.

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.

World Currency Trading Rises 17 Percent to $2.7 Trillion a Day, RBA Says 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.

Brown Tries to `Perversely' Benefit From U.K. Relapse Risk Before Election Gordon Brown is trying to turn the threat of a double-dip U.K. recession into an advantage.

Swiss Central Bank May Keep Key Rate Unchanged As Economy Gains Strength The Swiss central bank may leave its benchmark interest rate near zero today to bolster a recovery from the worst recession in more than three decades.

Shun Spain's Bonds on `Death by 1,000 Cuts,' Invesco, Merrill Lynch Say Investors should avoid Spain’s bonds as the euro region’s highest levels of joblessness stifle the country’s ability to cut its budget deficit, according to Invesco Ltd. and Bank of America Corp.’s Merrill Lynch unit.

Latvia Elections May Hamper Austerity, Weigh On Credit Rating, Fitch Says Latvian elections this autumn threaten to hamper government efforts to push through austerity measures vital to its international bailout, burdening the country’s credit rating, Fitch Ratings said.