Yuan power holds Euro

The euro rebounded from near four-year lows against the dollar on Thursday after China reaffirmed its aim of diversifying currency holdings away from the US dollar and denied it was reviewing its holdings of euro sovereign bonds.

The euro rebounded from near four-year lows against the dollar on Thursday after China reaffirmed its aim of diversifying currency holdings away from the US dollar and denied it was reviewing its holdings of euro sovereign bonds. See Graph

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$2.4 trillion is China's foreign exchange reserves, the world's largest stockpile.

Euro, the 16-nation single currency, which has lost more than 8 per cent against the dollar this month, rose more than 1 per cent after falling to $1.2154, after the Chinese assurance.

Markets up

World stock markets jumped higher on Thursday, extending the previous day’s large gains on easing concerns over the eurozone debt crisis.

Frankfurt leapt 2.24 per cent, London rose 1.79 per cent, Madrid gained 1.44 per cent and Paris put on 1.94 per cent while in Asia, Tokyo bounced 1.23 per cent higher and Hong Kong rose 1.22 per cent despite modest losses overnight on Wall Street.