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The Obama administration has been hoping China follows through with its pledge to let the renminbi fluctuate against the dollar.
That December Japan and nine other countries agreed to let their currencies fluctuate against the dollar within a narrow range of exchange rates.
This secondary currency, which he called a "neo-drachma," could be usable via mobile phone ("every Greek family has at least one," he said) to purchase local goods and services, and could fluctuate against the euro.
China's position, announced over the weekend, that it would allow its currency to fluctuate against the dollar breathed some life into the market on Monday, but the impetus has since tapered off.
Chinese authorities may decide to allow the renminbi to fluctuate against the dollar in a tight trading band rather than announce a one-time revaluation against the dollar, many observers say.
The daily trading band within which the yuan can fluctuate against the dollar was widened to 0.5% up or down, from 0.3%.Despite rising petrol prices, America's consumers grew in confidence in May, according to the University of Michigan's survey.The euro area ran a €7.4 billion trade surplus in March 2007.
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Though the price still fluctuates against the dollar, it is less volatile than it was, which makes it a better store of value.
The pound had fluctuated against the dollar in the months since the bid was launched, and some analysts believe this may actually have generated profits, reducing the total cost of the failed bid.
BLOOMBERG NEWS China Tweaks Currency Rules | The Chinese central bank said it would allow the renminbi to fluctuate more against the dollar during daily trading, The New York Times reports.
The renminbi has risen more than 10 percent against the U.S. dollar since mid-2010, when the authorities allowed the currency to fluctuate more widely against the dollar.
The trend has added complexity to what was, until recently, a currency debate focused largely on the United States and China, with Washington asking Beijing to allow the renminbi to fluctuate more freely against the U.S. dollar and China resisting a rapid appreciation, fearing a potentially devastating effect on its export sector.
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