China confirms support for euro

China's State Administration of Foreign Exchange (SAFE) has helped to bolster the euro by refuting rumours of a mass sell-off of the currency.

Reports in the Financial Times suggested that the country was reconsidering its debt holdings in the eurozone as a result of the ongoing debt crisis.

But SAFE said the claims were "baseless" and insisted it will continue to hold eurozone bonds as part if its diversified investment portfolio.

The group described the eurozone as "one of the most important investment markets" in the world. It said Beijing has always invested in euros and will continue to do so in the future.

"We believe that with the joint efforts of the international community, the eurozone will be able to overcome its difficulties and maintain the steady and healthy development of European financial markets," it added.

The comments provided support for the euro, helping it to rise against both the dollar and the yen.

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Posted by Sarah Pitton