NEW YORK (AP) — Stocks are set to extend a rally after China says it will allow its currency to appreciate against the dollar, a move that could provide a boost for U.S. manufacturers and exporters. Futures were sharply higher.
China currently keeps its currency artificially low to bolster its exports. At the same time, the weak currency makes imported goods expensive for Chinese consumers. A stronger yuan should allow U.S. manufacturers to be more competitive selling their products in China, one of the world’s largest and fastest growing economies.
Dow Jones industrial average futures are up 138, or 1.3 percent, at 10,511. Standard & Poor’s 500 index futures are up 17.60, or 1.6 percent, at 1,127.80, while Nasdaq 100 index futures are up 29.50, or 1.5 percent, at 1,939.00.
