European Central Bank published its scheduled Monetary policy decisions today, leaving the main refinancing operations interest rate at 4.00%. Jean-Claude Trichet, Central Bank President, commented this decision saying that ECB is ready to fight the pressure of the rising inflation. EUR/USD jumped back almost 1% after being generally bearish this week. Accelerating inflation, which reached its yearly highs last month, makes … “ECB Holds Rate, Trichet Predicts Hike”
Month: December 2007
Bank of England Cut Rate by 0.25
The Bank of Englandâs Monetary Policy Committee today decided to reduce the official interest rate paid on commercial bank reserves by 0.25% from 5.75% to 5.5%. The decision was driven mainly by the slowdown in the economical output and moderating consumers’ spendings. Other problems noted by the Committee, which are “posing downside risks to the outlook for both output and inflation further ahead”, relate to the financial sector affected by the mortgage banking crisis. As the inflation rate for October was … “Bank of England Cut Rate by 0.25”
New Zealand Dollar Rises on Unchanged Rate
New Zealand dollar rose against all other major currencies after the Reserve Bank of New Zealand left the Official Cash Rate (OCR) — short-term lending interest rate — unchanged at 8.25%. And as it was hinted by Bank Governor Alan Bollard the rate is not likely to be lowered until 2009. Alan Bollard marked labor market problems and the slowdown in housing sector as the main obstacles for the economical growth increasing: Economic … “New Zealand Dollar Rises on Unchanged Rate”
Great Britain Pound Falls on Rate Cut Expectation
Great Britain pound reached its two month minimum value against U.S. dollar today under the pressure of an interest rate cut during tomorrow Bank of England rates decision. GBP/USD touched 2.0353 level — the lowest since October 23. Chartered Institute of Purchasing and Supply released its PMI data today showing a decrease to 51.9 in November from 53.1 in October, while analysts expected almost the same number in November — … “Great Britain Pound Falls on Rate Cut Expectation”
Bank of Canada Cuts Overnight Rate
Bank of Canada lowered overnight interest rate by 0.25% to 4.25% today during its scheduled meeting; this interest rate will be used until at least the next such meeting which will be held on January 22, 2008. Bank of Canada announced that since the last Monetary Policy Report there were numerous economical and financial events that influenced both the economical growth of the country and the inflation. October total … “Bank of Canada Cuts Overnight Rate”
New Zealand Dollar – Victim of Carry Trade
While the Japanese yen is surely a benefiting currency when it comes to the carry trade panic, some currencies feel extremely bearish at the times of global financial instability and other factors that bring down risk appetites. New Zealand dollar is one such currency. Carry trade is a global trend in the high-yielding investment industry, where traders buy high-risk currencies such as South African rand and New Zealand … “New Zealand Dollar – Victim of Carry Trade”
Yen Rise Against High-Yielders
Yen continued its fall today while the high-yielding currencies like Australian dollar, Great Britain pound and other currencies were sold for Japanese yen to secure the risks connected with carry trading. AUD/JPY, one of the carry trade locomotives of the past, fell from 98 to 96 within two days since the start of the week. Further carry trade unwinding was caused by the speech of Henry Paulson,U.S. Treasury Chairman. He said … “Yen Rise Against High-Yielders”
Indian Rupee Firmer on Invetment Stability
Indian rupee added some weight earlier today as the investment inflow into the country’s stock markets continued to grow and the major Indian stock indexes – SENSEX and NIFTY – are in the green zone. USD/INR decreased by 5 Indian paise from the previous week close at 39.62 to 39.57 today. Recent Reserve Bank of … “Indian Rupee Firmer on Invetment Stability”
Strategists: Dollar Is Likely to Rebound in 2008
38 securities companies were surveyed by Bloomberg about their vision of the U.S. dollar’s future. After dollar lost more than 11% against euro this year, majority of the strategists are sure that the next year will be marked with the dollar rebounding versus major world currencies. As the U.S. trade balance deficit narrows at a … “Strategists: Dollar Is Likely to Rebound in 2008”
Chinese Yuan Appreciation Hurried by Japan
Fukushiro Nukaga, Japanese Minister of Finance, joined the “league” of European and U.S. officials in their endeavor to convince Chinese government to take more definite actions aimed towards yuan’s free exchange rate. Yesterday Nukaga met with Chinese official, including Vice-premier of China Zeng Peiyan, to discuss economics, monetary policy and specifically China’s currency exchange rate … “Chinese Yuan Appreciation Hurried by Japan”