Euro Advances on Rally of Asian Stocks

The euro advanced against the US dollar today as the gains of the Asian stocks muted the impact of the interest rates hike in China, increasing the investors’ willingness to risk. The MSCI Asia Pacific Index of regional shares advanced 0.3 percent even after China’s central bank raised the interest rates by 25 basis points to 2.75 percent. The Dollar Index, which tracks the dollar versus the currencies of six major US trading partners, fell 0.2 … “Euro Advances on Rally of Asian Stocks”

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US Dollar Declines vs. Commodity Currencies on Signs of Recovery

The US dollar declined versus the higher-yielding currencies as the macroeconomic reports suggested that the economic recovery is underway, encouraging the investors to take more risk in seeking profits. The University of Michigan index of the consumer sentiment in its revised edition showed the increase from 71.6 in November to 74.5 this month. The claims for the unemployment benefits in the US continued to decline, falling from 423,000 to 420,000 last week. The personal income in the US grew 0.3 percent … “US Dollar Declines vs. Commodity Currencies on Signs of Recovery”

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Loonie Gains vs. Greenback, Retreats vs. Aussie

The Canadian dollar strengthened today against its US counterpart as crude oil, the key export of Canada, rallied to the highest level in more than two years, but the loonie declined versus other commodity currencies as Canada’s economy grew in October less than expected. Canada’s gross domestic product increased 0.2 percent in October following the 0.1 percent decline in September. The forecasts promised the growth by 0.3 percent. Among the sectors contributed … “Loonie Gains vs. Greenback, Retreats vs. Aussie”

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Fitch Cuts Hungary’s Rating, Greece May Follow; Euro Down

The euro dropped today after the Fitch Ratings agency downgraded the credit rating of Hungary and warned about the possible reduction of Greece’s rating, fueling the worries about the ability of the Eurozone peripheral economies to deal with the debt crisis. The Fitch downgraded Hungary’s long term foreign currency credit rating to BBB- with a negative outlook today, citing the lack of the coherent medium-term fiscal strategy. The agency also stated that “there is a heightened … “Fitch Cuts Hungary’s Rating, Greece May Follow; Euro Down”

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South Africa’s Rand Gains for Fourth Day on High Interest Rates

The South African rand climbed today, posting the fourth straight day of gains, to the highest level in three years versus the US dollar as the investors seek higher yields while the developed nations keep their interest rates low. The investors seek profit from the higher interest rates in the emerging markets. The developed countries, like the US, the European Union and Japan, are reducing their interest rates closer to zero, while the rates in South … “South Africa’s Rand Gains for Fourth Day on High Interest Rates”

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Allied Irish Bank to be Nationalized?

The Irish government currently holds only 18% of Allied Irish Banks, but might raise its stake to 91.5%, nationalizing the bank. This comes as the troubled bank is having trouble raising necessary money in order to operate, and as the government has sweeping powers for a cash injection and a takeover. Neil Hume reports Although … “Allied Irish Bank to be Nationalized?”

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NZ Dollar Declines as Economy Deteriorates

The New Zealand dollar slumped today after the reports showed that the current account deficit widened, while the economy of the New Zealand deteriorated, worsening the outlook for the New Zealand dollar and decreasing demand for it. The current account deficit was NZ$1,770 million in the third quarter, rising from the deficit of NZ$0.99 million in the second. The New Zealand gross domestic product was down 0.2 percent in the September third quarter, following the 0.1 percent … “NZ Dollar Declines as Economy Deteriorates”

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Dollar Drops vs. Yen, Rises vs. Euro on US GDP & Home Sales

The US dollar weakened versus the Japanese yen today after the reports showed that the US GDP and the existing home sales grew less than was predicted by the analysts. The dollar managed to erase losses against the euro. The US gross domestic product grew 2.6 percent in the third quarter, while the forecasts promised the growth by 2.8 percent. The existing home sales expanded by from 4.43 million in October to 4.68 million in November. The Forex … “Dollar Drops vs. Yen, Rises vs. Euro on US GDP & Home Sales”

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