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BUSINESS A25
Friday 5 February 2016

In this Thursday, Jan. 7, 2016, file photo, Chinese pedestrians This Monday, Aug. 24, 2015, file photo, shows the New York Stock Exchange. U.S. stocks opened
walk past a giant U.S. dollar note on a display board of a bank slightly lower early Thursday, Feb. 4, 2016, as retail companies slipped. Energy stocks climbed
in Beijing. early as the price of crude oil recovered.

Associated Press Associated Press

Report: China’s yuan U.S. stocks end modestly
to erode, not end, higher after a day of wavering
dollar’s dominance
KEN SWEET dollar. the dollar. The euro rose 0.9
PAUL WISEMAN and permitted some banks AP Business Writer Investors are getting ready percent to a three-month
AP Economics Writer to offer yuan deposit ac- NEW YORK (AP) — U.S. for Friday’s payroll num- high of $1.1208 while the
WASHINGTON (AP) — Chi- counts outside China. stocks posted modest gains bers. Economists surveyed dollar fell 1.1 percent
na’s yuan will chip away at But the yuan still is used Thursday as investors await by FactSet forecast that against the Japanese yen
the U.S. dollar’s dominance in fewer than 3 percent Friday’s closely watched U.S. employers created to 116.79 yen.
over the next decade but of cross-border financial jobs report, which could 200,000 jobs in January and Le said the large move in
is unlikely to supplant it as transactions, compared offer insight about the U.S. the unemployment rate the dollar in recent days is
the world’s top currency, to nearly 44 percent for economy and help deter- held steady at 5 percent. partially related to a great
says a report from a federal the dollar and 29 percent mine whether the Federal Over the past couple of unwinding of positions by
watchdog. for the euro. Beijing won a Reserve raises interest rates weeks, investors have both large investors and
The study Thursday by the symbolic victory last year again next month. scaled back expectations companies who might hold
U.S.-China Economic and when the International Many believe the likelihood that the Fed will continue significant amounts of cash
Security Review Commis- Monetary Fund decided to of another rate increase in raising interest rates amid overseas.
sion predicts the yuan will include the yuan to a bas- March has faded because signs that the global slow- Many investors were “buy-
gain ground at the ex- ket of currencies used in of recent signs of weakness down in growth is begin- ing into this thesis of a strong
pense of the Japanese the IMF’s operations. in the global economy. ning to hurt the U.S. econ- dollar,” Le said. “Now that
yen, euro and British pound The commission report That has sent the dollar omy. the Fed is less likely to raise
and “may slightly erode” Thursday also predicted lower against other curren- On Wednesday, a private rates, we are seeing clients
the dollar’s status. that Chinese investment in cies, a welcome change survey found that the U.S. reposition.”
Written by Cornell University the United States will begin for U.S. exporters whose service sector grew in Jan- U.S. government bond
economist Eswar Prasad, to change as more Chi- overseas sales have been uary at the slowest rate in prices rose. The yield on the
the report predicts that nese households, business- hurt by the appreciation of nearly two years. Fed fund 10-year Treasury note fell to
China will allow its tightly es and institutional investors the dollar over the last year futures, a security that al- 1.85 percent from 1.89 per-
controlled financial system take advantage of grow- and a half. lows investors to bet on cent.
to “become largely open ing opportunities to invest The Dow Jones industrial which way the Fed will In other company news,
within the next three to five abroad. Largely because average rose 79.92 points, move interest rates, are in- mobile video camera mak-
years. of Chinese government or 0.5 percent, to 16,416.58. dicating that the next best er GoPro plunged 93 cents,
” But Beijing must enact purchases of Treasurys, The Standard & Poor’s 500 chance the Fed will raise or 9 percent, to $9.78 af-
broader reforms before the China is the biggest foreign index rose 2.92 points, or rates is not until early 2017. ter the company reported
yuan can join the dollar as owner of U.S. government 0.2 percent, to 1,915.45 “The market is starting to a wider-than-expected
a “safe haven” currency, debt. In the future, Chinese and the Nasdaq compos- price in a small chance of fourth quarter loss. GoPro
sought after by investors in investors increasingly will ite rose 5.32 points, or 0.1 recession, not some realis- shares are down 46 per-
times of crisis, according to sink money into U.S. stocks, percent, to 4,509.56. tic chance, but enough of cent in 2016.
the study. real estate and businesses. Stocks oscillated between a chance to give investors Viacom rose $1.11, or 2
China has aggressively The commission was cre- gains and losses the whole pause and reposition,” said percent, to $48.68 after
promoted the use of the ated by Congress in 2000 day, and got some trac- Khoa Le, who co-heads a the company announced
yuan in global commerce. to monitor the national se- tion in the last couple hours derivatives trading desk at that its 92-year-old majority
It has, for example, allowed curity implications of the of trading. Industrial and Credit Suisse. shareholder, Sumner Red-
yuan-denominated bonds U.S.-China economic rela- materials companies were Diminished expectations stone, was stepping down
to be issued in Hong Kong tionship. q among the biggest gain- of a March Fed rate hike as CEO to be replaced by
ers, helped by a weaker have continued to weaken CBS CEO Les Moonves.q