China to raise interest rates gradually fade factor will lead the Federal Reserve foreign exchange operations.

<P> Yesterday, the China rate hike on international markets affect basic fade, the dollar index return to decline. .Period midday in Europe, the euro and Australian dollar rose above 100 basis points were. .</ P> <P> surprise hike in interest rates on Tuesday night in China, investors into the U.S. market, overnight dollar index rebounded sharply to 78.0, non-US currencies fell rapidly, while news of interest rates also led to some hedge worth of products under pressure .such as gold, crude oil and stock index futures. .U.S. economic growth may gradually slow down the expected investment in commodity futures against the people's interest, so commodity currencies, such as the Australian, New Zealand and other low, because the regional economy and China is closely related to the Australian dollar drop .more than 2%. .</ P> <P> Hu Ming currency analyst at CITIC Bank, told reporters that interest rates increase investor concerns about slowing global recovery, while the Chinese to withdraw liquidity from the market, the other side of the quantitative easing by the Fed may .continue to inject liquidity to the market, which increased the recent market "unpredictable nature", so the situation is more complicated and confusing, so causing sudden drop in risk appetite, the dollar rose. .Together on Friday, the dollar index hit an upward trend since 2008 line, which technically is supposed to be a rebound, raising interest rates to stimulate U.S. news just upstream. .</ P> <P> But he also stressed that these are short-term response, the international foreign exchange markets, the medium-term the most important thing is to see how the expected changes in quantitative easing. .He believes that the market can not revolve around the theme has been to continue to raise interest rates in China, we are most concerned about the future U.S. Federal Reserve meeting in the November G20 meeting of policy and outcomes. .</ P> <P> is worth mentioning that in the near future the United States, Japan, European countries or the introduction of new quantitative easing to stimulate the economy stimulus plan the occasion, the face of the resulting large number of international capital flows, some Asian countries .the direction of tightening has already begun to act. .In addition to China to raise interest rates, the Monetary Authority of Singapore announced last week to guard against the risk of future inflation steady appreciation of allowing the Singapore dollar, South Korea, Thailand to cancel its debt to foreign investors to buy tax-free plan to strengthen foreign exchange control. .</ P>.