The Canadian dollar weakened today, the fourth straight session of declines versus the U.S. currency, as the concern for the global economic recovery drove the stocks and the commodity prices down. The Federal Open Market Committee said yesterday in the statement: Housing starts remain at a depressed level. Financial conditions have become less supportive of economic growth on balance, largely reflecting developments abroad. This statement shows that the macroeconomic indicators suggest the slower economic growth. … “Canadian Dollar Fall on Global Growth Outlook”
Month: June 2010
New Zealand Dollar Drops After Yesterday’s Surge
The New Zealand dollar weakened today on the speculation that it rallied yesterday too much and after the forecast about the slow economic grow proved true. The New Zealand dollar surged yesterday after the Federal Reserve kept the interest rates at the record low level. This news ignited the optimism for the kiwi (as the New Zealand currency commonly nicknamed) as the difference between the low rates in U.S. (between 0 and 0.25 percent) and the high interest … “New Zealand Dollar Drops After Yesterday’s Surge”
Japanese Yen Rises on Concerns for Economic Recovery
The Japanese yen extended its gains against the euro and the U.S. dollar today as the concerns that the economic recovery in the U.S. and Europe may slow fueled the demand for the safety. The Stoxx Europe 600 Index of European shares dropped 1 percent. The Federal Open Market Committee said in its statement: Financial conditions have become less supportive of economic growth on balance, largely reflecting developments abroad. The pace of economic recovery is likely … “Japanese Yen Rises on Concerns for Economic Recovery”
Aussie Gains on Outlook for Mining Tax Revision
The Australian dollar rose today against its New Zealand counterpart as the speculation arose that the government will make changes to the planned mining tax after the Prime Minister Kevin Rudd resigned. Ruddâs popularity was shattered after he proposed the 40 percent tax for the mining companies from 2012. Julia Gillard, Rudd’s successor, said that she was âthrowing open the governmentâs doorâ to negotiate the mining tax with … “Aussie Gains on Outlook for Mining Tax Revision”
Dollar Falls as Fed Keeps Rates Low, Home Sales Slump
The U.S. dollar weakened today against the euro and the Japanese yen after the new home sales unexpectedly plunged ant the Federal Reserve kept the interest rates at the record low level. The housing market in the U.S. was showing signs of the weakness recently and today’s report about the new home sales wasn’t optimistic either. In fact, it showed really depressing slump from 446,000 in April to as low as 300,000 in May. That’s even more … “Dollar Falls as Fed Keeps Rates Low, Home Sales Slump”
Pound Goes Up on Outlook for Interest Rates Increase
The Great Britain pound rose today against the U.S. dollar and the euro on the speculation that the planned budget cuts wouldn’t damp the economic growth and after the Bank of England signaled that it might raise the interest rates. The speculations say that the emergency budget, devised by, the Chancellor of the Exchequer George Osborne, should preserve Britain’s top credit rating without strangling the economic growth. According to the minutes of the recent BOE meeting, the policy … “Pound Goes Up on Outlook for Interest Rates Increase”
Brazilian Real Drops as Mantega Curbs Appreciation
The Brazilian real went down today after the Finance Minister Guido Mantega said yesterday that the government intends to curb the currency’s gains. Mantega that the policy makers “have tools to prevent” the appreciation, “but there will be pressure”. This announcement wasn’t different from what the government was telling earlier, but the market participants became more pessimistic about the real as the intention to curb gains was confirmed. USD/BRL … “Brazilian Real Drops as Mantega Curbs Appreciation”
Yuan Appreciates on Outlook for Flexible Exchange Rate
The Chinese yuan gained today on anticipation that the central bank would allow the currency more flexibility before Group of Twenty nation’s meeting this week. Other nations criticized China for setting strict boundaries to yuan’s movement. More flexible exchange rate will not only deflect the criticism, but also should curb the inflation and shift the economy from export-oriented status to service-oriented. USD/CNY traded near 6.8124 as of 9:45 GMT … “Yuan Appreciates on Outlook for Flexible Exchange Rate”
Britain’s Budget Cuts Won’t Strangle Economy, Pound Strengthens
The Great Britain pound rose against the U.S. dollar today after Fitch Ratings positively commented on Britain’s government efforts to curb the budget deficit; versus the Japanese yen the sterling performed not so well as the demand for the safety still supports the Japanese currency. The U.K plans the levy on banks and increase of the sales tax in order to battle its record budget deficit. These measures should preserve the nation’s top credit rating without … “Britain’s Budget Cuts Won’t Strangle Economy, Pound Strengthens”
Canadian Dollar Regains Strength as Bets on Rates Increase Rise
The Canadian dollar erased its yesterday’s losses versus the U.S. currency and extended its rally against the euro as the inflation were near the forecasted value, causing the speculation that the central bank would increase the interest rates. The annual inflation dropped to 1.4 percent last month from 1.8 percent in April, the core rate (excluding most volatile items) fell from 1.9 percent to 1.8 percent. The results were pretty near … “Canadian Dollar Regains Strength as Bets on Rates Increase Rise”