The Russian ruble slid today after the prices for crude oil went down on outlook for slower global economic growth. The decline will test the commitment of Russia’s central bank to allow the exchange rates to float more freely. Oil, Russiaâs main export revenue source, slumped as much as 4.3 percent yesterday as China raised its interest rates, causing the speculation that the slower growth of world’s biggest energy consumer would hurt … “Ruble Drops with Crude Oil Prices”
Month: October 2010
Pound Falls on Dovish BoE Meeting Minutes
The Great Britain pound slipped against the euro and the Japanese yen today as the dovish minutes of the Bank of England meeting signaled that the Bank may increase its bonds buying to support the UK economy. The bank’s policy makers decided to keep the key interest rate at 0.5 percent and the bond purchases at £200 billion ($314 billion). The minutes of the BoE Monetary Policy Committee meeting showed that some members “felt the likelihood that further … “Pound Falls on Dovish BoE Meeting Minutes”
China Raises Interest Rates, Can It Prevent Asset-Bubble?
The Chinese yuan slumped today against the US dollar, before rebounding later, after China’s policy makers raised the interest rates for the first time since 2007 to prevent the asset-bubble. The Chinese currency gained versus the euro. China’s central bank increased the benchmark one-year lending rate from 5.31 percent to 5.56 percent and the deposit rate from 2.25 percent to 2.5 percent. Such measures were taken to restrain lending and prevent … “China Raises Interest Rates, Can It Prevent Asset-Bubble?”
Bank of Canada Keeps Interest Rates Unchanged, Loonie Down
The Canadian dollar dropped today after the Bank of Canada left the overnight rate unchanged and as China raised its interest rates, damping the demand for the growth-related currencies. The Bank of Canada kept its benchmark overnight rate at 1.0 percent. Such decision wasn’t unexpected and was predicted by the analysts, who now think that the Bank may keep the rates unchanged for a prolonged period of time. The Bank said in its statement: At this time of transition … “Bank of Canada Keeps Interest Rates Unchanged, Loonie Down”
Chinese Interest Rates Hike Drives Loonie Down
One of the riskier currencies, crippled by the Chinese interest rates hike, was the Australian dollar, which slumped today against its US counterpart after trading at parity last week. The increase of the interest rates is considered to be the attempt of the Chinese policy makers to slow the growth. The slower China’s growth isn’t particularly good for Australia, as China is the nation’s biggest trading partner. Earlier the Aussie surged as the Monetary Policy Meeting Minutes … “Chinese Interest Rates Hike Drives Loonie Down”
Dollar Strengthens as China Rises Interest Rates
The US dollar strengthened today against all other currencies as the demand for the higher-yielding currencies slumped after the unexpected interest rates hike in China. The subsequent sell-off boosted the dollar and crippled other currencies. The greenback also strengthened after Timothy Geithner, the US Secretary of the Treasury, said yesterday that the policy makers would attempt to preserve the strength of the US currency and aren’t planning the devaluation. EUR/USD fell from the opening level of 1.3935 to 1.3810 … “Dollar Strengthens as China Rises Interest Rates”
Growing Consumer Prices Bolsters New Zealand Dollar
The New Zealand dollar strengthened today after the report showed that the inflation in New Zealand accelerated in the third quarter of this year, allowing the kiwi to gain versus 14 of 16 most traded currencies. The New Zealand Consumer Prices Index rose 1.1 percent in the third quarter of 2010, compared to the 0.2 percent growth in the second quarter and the expected 1.0 percent increase. John Key, the Prime Minister of New Zealand, said that … “Growing Consumer Prices Bolsters New Zealand Dollar”
Are You A Sprinter Or A Marathoner?
They say that patience is a virtue but in the world of trading it can save your life. I have seen too many people come into this business in such a rush to make money that they jump on everything that moves and as a result end up taking lot of questionable trades that only … “Are You A Sprinter Or A Marathoner?”
Pound Falls on Concerns Budget Cuts Won’t Help with Deficit
The Great Britain pound dropped today ahead of the announcement this week about the detail of the spending cuts to decrease the nation’s significant budget deficit. George Osborne, the Chancellor of the Exchequer, should announce his plans for the spending cuts on Wednesday. He hopes that the budget deficit would be nearly eliminated by the planned measures. Yet the economists aren’t convinced that the planned cuts would be able to reduce the deficit fast enough. GBP/USD … “Pound Falls on Concerns Budget Cuts Won’t Help with Deficit”
Yen Rises vs. Dollar Ahead of G-20 Meeting
The Japanese yen extended its rally against the US dollar on the speculation that Japan wouldn’t intervene to weaken the currency before the Group of Twenty meeting. The leaders of the nations from G-20 will meet this week and will likely discuss the so-called “currency war”, the “race” of the countries to devaluate their currencies. It’s considered unlikely for any country of G-20 to weaken its currency ahead of the meeting. And without the intervention the yen may rose to the next … “Yen Rises vs. Dollar Ahead of G-20 Meeting”