The Australian dollar benefited today from the better than expected first quarter GDP growth as the Reserve Bank of Australia may start considering interest rate hikes again. The gross domestic product grew 0.6 percent in the first quarter of 2008 in Australia, following fourth quarter 0.7 percent increase and surpassing the median experts estimate value of 0.3 percent gain. In the year-to-year comparison GDP grew 3.6 percent … “Australian Dollar Gains on Higher GDP”
Month: June 2008
Yen Appreciates on Lehman Worries
The Japanese yen gained today against its usual carry trade counterparts as the markets worried about the Lehman Brothers loss, which might be signaling for a financial crisis deepening. The carry trade was at its uprise last two-three weeks as the subprime crisis has been fading out and investors started to seek more risky assets. Yen was used as a short currency in the … “Yen Appreciates on Lehman Worries”
Pound Posted Biggest Daily Drop in 3 Weeks
The pound sterling posted today its biggest drop against the U.S. dollar since May 7 as the speculations that Bradford & Bingley Plc, the largest mortgage lender in U.K., will have to raise more capital, indicated a worsening in the real estate market crisis. The currency also fell against euro and yen as the investors expected that the Bank of England will show … “Pound Posted Biggest Daily Drop in 3 Weeks”
Aussie Goes Down on Weak Retail Sales
The Australian currency dropped today on Forex as the government bonds rose after the report on the April retail sales showed a decline of this important indicator. The retail sales in Australia slid down 0.2 percent in April, forming a steady downward monthly trend for the growth macroeconomical indicator. A decline in retail sales is now attributed to the extremely tight monetary policy in Australia, spurring belief that the … “Aussie Goes Down on Weak Retail Sales”
Saudi Arabia to Keep Dollar Peg
Saudi Arabias Finance Minister Ibrahim Al-Assaf agreed with the U.S. Treasury Secretary Henry Paulson that the riyals peg to dollar is serving good to the countrys economy and assured him that Saudi Arabia has no plans to unlink the currency. During his four-day visit to the Middle East Paulson was to convince the regional financial officials to abstain from depegging their currencies from dollar and to increase … “Saudi Arabia to Keep Dollar Peg”