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Timothy Geithner, u.s., when Finance Minister asked how much greater China should allow the yuan to rise, replied: "Superior." Photo: Bloomberg

"It's very important that people understand that American United States and no country in the world can devalue its prosperity, to be competitive", he said. " It is not a viable strategy.?

The dollar strengthened against a basket of currencies after his comments to the leader company in Silicon Valley California Monday, including the yen, the euro and the pound sterling.

Is the first times since February that Mr. Geithner-who helped create the "dollar strong mantra" in the years 90 - has broken his silence on the weakened American dollar.

It's also weekend meeting of Heads of finance group 20 rich countries and emerging in southern Korea which should be overshadowed by a dispute between China and on the evaluation of the yuan United States and growing fears of protectionist currency wars.

The weakness of the dollar has already led Japan focused on exports to launch an unsuccessful response to strengthen the yen, while the Brazil warned that an "international currency war" was harming the competitiveness of the country - a weak dollar causes more funds to flow in the Brazil and of other emerging market economies growing currencies.

The dollar fell 7pc since late August when Fed Chairman Ben Bernanke has hinted the possibility of fresh stimulus to feed the largest economy in the world.

Respond to questions from the audience before the Palo Alto, California Commonwealth Club he said the United States should "work hard to maintain confidence in the dollar strong."

Friday, the dollar index has reached a minimum of 10 months against a basket of currencies, while the greenback was cool plumbing minimum 15 years against the Japanese yen.

Brazil Monday moved to cool a strong rally in its currency by increasing fees for foreigners buy local and exchanging bonds in foreign currency derivatives.

Finance Minister Guido Mantega said the move was intended to reduce foreign investment in the Brazil, and urges other States to take coordinated action against the weakness of the dollar.

Minister for the economy of the Argentina and public finance Amado Boudou Monday called on developed countries to focus on job creation rather than actions that weaken their money, saying that a "true currency war" was underway.

However, they say the problem is China, restrictive exchange rate regime that until recently had kept largely linked to the dollar.Il yuan only wants China to allow the value of the yuan to rise.

On Friday, Mr. Geithner delayed a report on the subject if value of the yuan is manipulated, saying that he wants to work in the g-20 process to chop a multilateral solution.

A higher how China's expected allow the yuan to rise, he replied: "superior".

On the question of whether the dollar lose its status as the world reserve currency the head of the Treasury Board stated: "not in our lifetime."

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The Federal Reserve has purchased the $ 300 billion Treasury bonds year last QE policy should purchase another round. Photo: Getty Images

"The challenge now is the extent of policy measures can be taken by the United States is rather limited," Douglas Hodge, CEO of the Pimco said Bloomberg interview the world knowledge forum in Seoul on Thursday.

Made comments echo the concerns on the record-low yields of the Treasury Board that has seen the demand for the United States bonds decline as investors seeking returns higher commodity and actions.

Forecast more Fed stimulus to stimulate greater economy in the world has pushed the dollar to a minimum of 10 months against a basket of currencies and prices or to a new record of $1,380.32 ounce. oil crude and grain has also increased.

"There is virtually no rate of interest, so all the world in commodity and stock market", Ronald Leung Lee Cheong gold distributors in Hong Kong told Reuters.

Pimco believes that the developed economies will suffer a slow and below-average growth returns and focuses on sovereign debt in emerging markets, such as the India and China.

"Even if the EQ [quantitative easing] process is great and rates decreased further, in our opinion, we are going to approach the end of the demonstration of the bond market"said Mr. Hodge""

"Where we are sitting, it is very difficult to propose it will do this kind of price satisfaction we saw in bonds for 12 to 24 months."

Mike Lenhoff, Chief market strategist at Brewin Dolphin in London is list.it agree a strategy entitled note what QE good do?, he wrote: "" If the Fed Announces EQ program after the next meeting, how could react markets face? I suspect that the Treasury market would sell off on the view that it was better travelled are arrivésils are not likely to resist taking profits ".".

He said that QE is likely to be regarded as positive for economic growth and the benefits of business that would benefit actions.

"Evaluations have swung in favour of actions, even with a few bond, yields rise assessments are always likely to promote their strategic asset of choice - even if it leads to yields higher on obligations," he said

As for gold, he said: "the bubble will continue to swell, but which will invoke the top".

Sterling also benefited from the weakness of the dollar Thursday, rising above $1.60 for the first time since the end of January.

However, Geraldine Concagh, an economist at IBA Group in Dublin the Treasury, said: "Sterling has problems of his own cause speculation the Bank of England could also introduce quantitative easing more."

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