GCC states â Bahrain, Kuwait and Saudi Arabia â decided to cut their deposit rates from 3.50% to 3.00% today, following the yesterdayâs interest rate cut by the Federal Reserve. Based on the risk estimations for the economy recession and the recent negative macroeconomic statistics, FOMC cut the rate at its scheduled meeting yesterday from … “Bahrain, Kuwait, Saudi Arabia Cut Interest Rates”
Month: January 2008
Russia May Stop Using Ruble to Fight Inflation
The Central Bank of the Russian Federation will probably stop intervening into the national currency market in order to strengthen the ruble against the U.S. dollar and hold down the growing inflation. This was stated by the Alexei Kudrin, Russian Minister of Finance, at the investment conference in Moscow today: In the coming three years we should move to an inflation targeting regime and a floating exchange … “Russia May Stop Using Ruble to Fight Inflation”
Reserve Bank of India Holds Interest Rates
The majority of Forex traders expected that the Reserve Bank of India will lower the main interest rates today to pare with recent emergency cut by the Fed and the anticipated additional interest cut at tomorrow Fedâs meeting. But Yaga Venugopal Reddy, Governor of the Reserve Bank of India, decided to leave the key interest rates at the same level. The main repurchase rate was kept at 7.75% â one of the highest rate level in near six years; … “Reserve Bank of India Holds Interest Rates”
Singapore Dollar Rises Before Fed Cut
The Singapore dollar rose today during the Asian Forex trading session as the market analysts expected the Federal Reserve of U.S. to lower the interest rate at the next meeting, widening the rates difference for these two currencies. Fundamental data report on the U.S. housing which came out yesterday strengthened the confidence of the investors that Fed will have to cut its overnight interest rate by at least 50 basis points tomorrow. After the opening at 1.4204 … “Singapore Dollar Rises Before Fed Cut”
Dubai is Pro Dollar Peg
The government of Dubai, U.A.E. largest emirate, is against the currency revaluation and is pro dirham’s peg to the U.S. dollar, according to Sultan Ahmed bin Sulayem, the member of the Dubai’s Board of Executive Council. Kuwait, the only GCC state that dropped their long-lasting peg to dollar so far, remains alone in its ways … “Dubai is Pro Dollar Peg”
India May Cut Rate to Reduce Gap with U.S.
Palaniappan Chidambaram, the Finance Minister of India, said yesterday that the latest emergency rate cut by the Fed will probably influence the next interest rate decision by the Reserve Bank of India. The difference between the Indian and U.S. interest rates, even before the last Fed’s cut, has been adding to the demand for the … “India May Cut Rate to Reduce Gap with U.S.”
Yuan Continues Weekly Gains
With almost every day on Forex being bullish for the Chinese yuan, today it continued its appreciation against other major currencies and particularly against the U.S. dollar, which is now in a bearish trend after the latest Fed‘s rate cut. While U.S. government is trying to save its economy (and other world economies with it), … “Yuan Continues Weekly Gains”
Euro Stronger after Business Climate Improves
Euro stood stronger against the U.S. dollar and the Japanese yen on Forex market after the Business Climate Index for January 2008 in Germany was released by the Ifo Institute for Economic Research today. EUR/USD climbed up 50 pips up from the today’s opening level, making it a third day in a row for euro … “Euro Stronger after Business Climate Improves”
Aussie Gains of Fed Rate Cut
The Australian dollar gained yesterday after the Federal Reserve announced an emergency rate cut from 4.25% to 3.50%. It also continued to gain today through the most of the Asian trading session, but has already went down past the daily opening price. The main idea behind the Aussie’s (AUD) growth is in the expectations by the majority of traders to see the Reserve Bank of Australia increasing the main interest rate during the February 5 meeting. … “Aussie Gains of Fed Rate Cut”
U.S. Fed Reserve Cuts Interest Rate 0.75 in Emergency
Today, the Federal Reserve System decreased the national benchmark interest rate by 0.75% â from 4.25% down to 3.50%. This was an emergent move to stimulate the financial liquidity amidst the tumbling stock markets. It was the first such move since the aftermath of 9/11, when global markets reacted with a similarly sharp decline. But the current bearish market can be expected to be more lasting and powerful than the last … “U.S. Fed Reserve Cuts Interest Rate 0.75 in Emergency”