Money and Metals

Forbes picked up the G7 news. "The dollar remained firmly on the backfoot after G7 countries called for emerging countries' currencies to be allowed to appreciate, particularly the Chinese yuan. Such a direct statement on the currency issue had been unexpected and it added to a string of dollar-negative issues in the market at the moment, including record high oil prices and the possibility of more central banks diversifying their reserves away from the dollar."

"UBS analyst Daniel Katzive said the G7 statement over the weekend could contribute to bringing concern over global imbalances back to being a key issue in currency markets, particularly after the IMF was 'unequivocal' in stating that a weaker dollar was likely to be part of global rebalancing."

"'The statement caps a week of official focus on the potential risks from and remedies for international imbalances, suggesting official focus on this topic has reached a new level of intensity,' he said."

"Katzive also noted a comment from Russia's central bank chief on Friday that the dollar was not the 'absolute' reserve currency, while a Qatar central bank official was reported this morning as indicating that the central bank is buying euros and could continue until a 40 pct allocation is reached."