China’s decision to free its currency from a decade-long peg to the US dollar drew praise yesterday from European officials who hoped the change might benefit their economies, which have been battered by cheap Chinese imports.

THE pound traded near a six-month high against the euro on speculation the British economy is growing quickly enough to justify one more interest-rate increase this year by the Bank of England.

THE dollar had its biggest annual decline versus the euro on low US interest rates relative to Europe, and on signs officials on either side of the Atlantic aren’t concerned about the decline in the US currency.

THE dollar fell past $1.26 against the euro for the first time, heading for its biggest annual drop on low US interest rates relative to Europe.

THE British pound had its biggest one-day drop in a month against the dollar on speculation the Bank of England will reduce its benchmark rate from 3.75% on Thursday, cutting the return on pound-denominated deposits.