FinancialNewsOnline | October 19, 2010 - The safe-harbor dollar gained sharply across the board Tuesday after China surprised investors by raising its key interest rates in an effort to ease the nation's rapid economic growth, raising the possibility of a potential slowdown.
The surge the greenback is receiving is in direct opposition to recent trends, as it has been under pressure with investors expecting further quantitative easing by the Fed.
The news also led investors to blow out of positions in commodities like oil and gold as concern regarding slowing Chinese growth could lead to a decline in demand for the commodities.
