Risk appetite down on announcement
China has once again raised reserve requirements on its banks. This is the second time in two weeks -- and the fifth time this year. The move is designed to rein in economic growth by slowing inflation.
China has been seeing great economic growth, even through the recession. Many have been expecting China to be the main driver of economic recovery, but China has balked at the position, looking instead to shoring up its own economic position.
As one might expect, the news has caused a reduction in risk appetite in forex trading. Only the euro is higher, helped by the news that Ireland will accept a bailout. Other than that, many riskier currencies -- especially those relying on commodities -- are lower.
