China buying euros assets to stabilize currency-Medley

By Daniel Bases

NEW YORK, June 4 (BestGrowthStock) – Hedge fund advisor Medley
Global Advisors issued a report on Friday saying China is
buying euro-denominated assets in order to underpin the
currency, causing a slight strengthening against the U.S.
dollar, a source told Reuters.

The report, titled “China Buying Euros,” was seen
contributing to the euro rising to $1.2075 from $1.2025 in
early New York trade.

“China is purchasing euro assets in order to stabilize the
euro’s decline, according to well placed sources in Beijing,”
said a source who read directly from the three paragraph Medley
report.

“Chinese sources indicating a sensitivity to the $1.20
level,” the report said, according to the source.

According to the report, both Beijing and Washington
recognize that an unruly depreciation would have a significant
impact on both countries’ exports and could then affect the
trajectory of their growth rebound.

China is therefore likely to remain cautious about exiting
from stimulus policies, the report said.

In addition, the report said the Bank for International
Settlements, which fosters international monetary and financial
cooperation and serves as a bank for central banks, was seen in
trading in the currency markets earlier on Friday buying euros
around the day’s low of $1.2019.

“There is a fairly limited reaction to the report so far
today, but I think it did play a role in lifting the euro,”
said one currency trader who heard about the report but
requested anonymity because he is not authorized to speak
publicly.

Stock Market Money
(Reporting by Daniel Bases; Editing by Kenneth Barry)

China buying euros assets to stabilize currency-Medley