China’s decision to allow its currency to float more freely triggers rally on Wall Street on Monday (6/21/2010), with investors confident that a sustainable global economic recovery.
Dow Jones Industrial Average jumped 125.16 points (1.20 percent) at the opening to 10575.80.
The Nasdaq technology index rose 26.29 points (1.14 percent) to 2336.09 and the broader market index S & P 500 rose 12.14 points (1.09 percent) at 1129.65.
China Yuan reached highest level in five years on Monday after authorities allowed the currency more flexible in what is widely seen as a bid to avoid confrontation with Washington at the G20 summit this weekend in Canada.
United States has accused Beijing of unfair advantage in trade through Tura value of its currency that is not actually stated kedaan.
Yuan rises to around 6.7969 against the U.S. dollar in trading in China on Monday – strongest level since July 2005 but still within a tight trading and analysts say Beijing is not a sign of China’s promise of a big revaluation.
