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Renminbi's gain boosts markets
NEW YORK, (UPI) -- U.S. markets headed higher Monday after the Chinese yuan moved to its highest value against the dollar in 20 months.
The People's Bank of China said Saturday it would allow limited flexibility in the Chinese currency, which many analysts feel is undervalued, keeping Chinese exports cheap overseas. The yuan had been pegged to the U.S. dollar since the beginning of the financial crisis in 2008.
Companies with a presence in China, such as Caterpillar Inc., expect to make gains if the yuan appreciates, as do Chinese companies that serve a domestic market.
Shares in Asian airlines surged on the news. Caterpillar shares gained 1.44 percent.
In early afternoon trading, the Dow Jones industrial average rose 63.49 points or 0.61 percent to 10,514.13. The Standard & Poor's 500 index rose 5.43 or 0.49 percent to 1,122.94. The Nasdaq composite index added 4.07 or 0.18 percent to 2,313.87.
The benchmark 10-year Treasury note fell 3/32 to yield 3.234 percent.
The euro fell to $1.233 from Friday's $1.2374. Against the yen, the dollar rose to 91.039 yen from Friday's 90.74 yen.
The yuan rose 0.42 percent to 6.7976 against the dollar.
In Japan, the Nikkei 225 index rose 2.43 percent, 242.99, to 10,238.01.
In Britain, the FTSE 100 index rose 0.92 percent, 48.27, to 5,299.11.
NEW YORK, (UPI) -- U.S. markets headed higher Monday after the Chinese yuan moved to its highest value against the dollar in 20 months.
The People's Bank of China said Saturday it would allow limited flexibility in the Chinese currency, which many analysts feel is undervalued, keeping Chinese exports cheap overseas. The yuan had been pegged to the U.S. dollar since the beginning of the financial crisis in 2008.
Companies with a presence in China, such as Caterpillar Inc., expect to make gains if the yuan appreciates, as do Chinese companies that serve a domestic market.
Shares in Asian airlines surged on the news. Caterpillar shares gained 1.44 percent.
In early afternoon trading, the Dow Jones industrial average rose 63.49 points or 0.61 percent to 10,514.13. The Standard & Poor's 500 index rose 5.43 or 0.49 percent to 1,122.94. The Nasdaq composite index added 4.07 or 0.18 percent to 2,313.87.
The benchmark 10-year Treasury note fell 3/32 to yield 3.234 percent.
The euro fell to $1.233 from Friday's $1.2374. Against the yen, the dollar rose to 91.039 yen from Friday's 90.74 yen.
The yuan rose 0.42 percent to 6.7976 against the dollar.
In Japan, the Nikkei 225 index rose 2.43 percent, 242.99, to 10,238.01.
In Britain, the FTSE 100 index rose 0.92 percent, 48.27, to 5,299.11.
