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Business Home Internet The dollar rose sharply after Federal Reserve Chairman, Alan Greenspan, told finance ministers at the G-7 summit that the U.S. trade deficit would be reduced.If you would like to receive late breaking business news covered by AXcess News then you need to subscribe. By joining, you can stay ahead of the pack and receive the latest news in your email in-box first.

In other news, the G7 summit is being held over the weekend with credit worries being the hot topic, stay tuned for commentary on Monday.

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The Euro appreciated last week above 1.58 against the Dollar, but dropped over the weekend, as a consequence of the G7’s summit reaction.

Based Business Home Income Feb 6, 2005 (AXcess News) London - The dollar rose sharply after Federal Reserve Chairman, Alan Greenspan, told finance ministers at the G-7 summit that the U.S. trade deficit would be reduced.

The Bush administration is predicting job growth will average 175, 000 per month over the course of 2005. In London, Federal Reserve Board Chairman Alan Greenspan Friday said the recent dollar decline and likely action to narrow the U.S. budget deficit could stabilize and even cut the record U.S. trade deficit. The Federal Reserve Board chairman is in London for a meeting of finance officials from the world's richest industrial nations. Mr. Greenspan told a London conference that the voice of fiscal restraint, barely audible a year ago, has at least partially regained volume. President Bush is promising to reduce the U.S. fiscal deficit by half over the next four years., a key gauge of consumer sentiment, issued monthly by the University of Michigan, registered a slight decline in January. Spurred by consumer spending, the U.S. economy has been growing at about a four percent annual rate.

Based Business Home Internet The meeting of the seven richest nations in London produced calls of action there by finance ministers concerned about the rising U.S. trade deficit. Finance ministers urged currency stability, concerned over the dollar's drop in recent years.

Policy challenges include cutting the public sector deficit to 3% of GDP by 2008, from about 6.5% in 2006, and tackling a persistent trade deficit.

Business Homebased Opportunity Fed chairman Alan Greenspan told the group of seven that market forces and greater U.S. budget discipline should help reduce the trade deficit gap. Greenspan's message sent the dollar climbing to a three-month high Friday.China, which attended the G-7 meeting for the first time, came under pressure from the U.S. and Europe to adjust its currency more in line with the U.S. dollar.

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Based Business Home Mlm China's central bank governor said Sunday the Yuan was only somewhat undervalued and that it would set its own timetable to adjust its currency.Russia announced Thursday that it was adjusting its currency, the Ruble, using a basket of euro and dollar combinations due to the low dollar value and concerns over the U.S. trade deficit.President Bush will propose his fiscal 2006 budget on Monday, which may aid the dollar's value in foreign finance ministers views. AdvertisementThe Bush administration contends that the federal budget will be cut in half by 2009, despite burgeoning costs of the Iraqi war and Social Security.

Business New Opportunity The U.S. government is expected to release data Thursday that shows that the U.S. trade deficit narrowed by $57 billion in December after two consecutive months of record deficits.

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