U.S. Dollar Rallies After China Increases Reserve Requirements
February 12th, 2010Via: Market Watch:
Gold and other metals futures fell on Friday, as China’s hike of reserve requirement ratios triggered a rally in the U.S. dollar and a sell-off in commodities.
Gold for April delivery, the most actively traded contract, dropped $9.90, or 0.9%, to $1,084.80 an ounce in electronic trading on Globex.
The People’s Bank of China said Friday it will raise the ratio of reserves banks must set aside by 0.5 percentage points, the second such move this year. Following the news, the U.S. dollar rallied against its major rivals, while stock futures and commodities fell.
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