The Japanese yen weakened today against all other most-traded currencies on speculations that the Group of Twenty will not accuse Japan of currency manipulations, allowing Japanese policy makers to push the currency further down. The Group of Twenty has started its two-day meeting yesterday. The global growth is the main agenda of the gathering, but currency wars are among topics of the discussion too. There are signs that Japan will … “G-20 Does Not Blame Japan for Weakening Yen”
Month: April 2013
US Dollar Soft Despite Poor Economic Data
The US dollar trimmed its losses against riskier currencies yesterday as macroeconomic data from the United States was worse than expected. The currency resumed its decline today as optimism returned to the market. Unemployment claims rose by 4,000 to 352,000 last week. The increase was small, but forecasters have promised the claims to stay virtually unchanged. The manufacturing index of the Federal Reserve Bank of Philadelphia fell from 2.0 in March to 1.3 … “US Dollar Soft Despite Poor Economic Data”
US Economy: Why We’re Here and How did this Happen?
As anyone who’s ever read any of my articles knows, I’m generally liberal in my writing. I’m not very keen on being conservative as to me being conservative means being close minded. Given that I’m a student of history, I seem to recall Heraclitus stating “the only thing that’s constant is change.” As such, I’m … “US Economy: Why We’re Here and How did this Happen?”
Loonie Gains Support against Greenback on Recovering Commodities
Canadian dollar is getting a little help today, heading higher after recent losses. The loonie’s success against the greenback is being helped along by higher commodity prices. Canadian dollar is getting a boost against the US dollar today, following a few days of relative weakness. The Bank of Canada recently lowered its economic growth forecast for the country, and it wasn’t helping that commodities were heading lower, either. … “Loonie Gains Support against Greenback on Recovering Commodities”
Euro Gains Ground on US Difficulties
Euro is gaining a little ground today, recovering a bit from yesterday’s drop, and finding a degree of support at the psychologically important 1.30 level. However, there are still some vulnerabilities with the euro. The latest economic data out of the United States is weighing on the greenback today, and that is helping the euro a little bit. After yesterday’s huge drop, euro is showing signs of recovery. Concerns about the US economy, … “Euro Gains Ground on US Difficulties”
Indian Rupee Gains as Commodities Weaken
The Indian rupee managed to gain today even amid the market sentiment that was negative to risky assets. The rally was caused by hopes that falling prices on raw materials will help to reduce the nation’s current-account deficit. Finance Minister Palaniappan Chidambaram said that the current-account gap was 5 percent of gross domestic product in the fiscal year ended March 31. Gold, which has fallen 14 percent this … “Indian Rupee Gains as Commodities Weaken”
Won Suffers from Global Economic Growth Concerns
The South Korean won declined today as concerns about global economic slowdown made investors pull their capital away from riskier assets. The downward revision of economic growth by the International Monetary Fund sent markets into the risk aversion mode that still persists. South Korean assets were even more vulnerable because of the threat of a war with North Korea. The KOSPI Index dropped as much as 1.2 percent to the close … “Won Suffers from Global Economic Growth Concerns”
Aussie Recovers After Big Drop
The Australian dollar recovered a bit today against the US dollar and the Japanese yen after yesterday’s big drop. The decline was caused by weakness of commodities and stocks that followed the International Monetary Fund’s economic forecast of this year. The IMF revised its global growth projections for 2013 down from 3.5 percent to 3.3 percent. The news spurred traders to sell riskier assets. The MSCI World Index dropped as much as 1.3 percent … “Aussie Recovers After Big Drop”
Loonie Loses Strength as Growth Projections Lowered
The Canadian dollar dropped against safer currencies today as both the Bank of Canada and the International Monetary Fund revised negatively their projections of Canada’s economic growth. The loonie managed to outperform the euro. The Bank of Canada kept its main interest rate at 1 percent during today’s monetary policy meeting. The central bank said that the average growth in 2013 will be at 1.5 percent, down from the previous projection of 2 percent. … “Loonie Loses Strength as Growth Projections Lowered”
Dollar, Yen Rise on Safe Haven Demand
US dollar and Japanese yen are both gaining ground today, rising on safe haven demand. Concerns about the global economy are weighing on commodities and high beta currencies, and that is helping safe haven currencies. Both the US dollar and the Japanese yen are gaining against their high beta counterparts today. The IMF recently downgraded its forecast for global economic growth, and that has some worried about … “Dollar, Yen Rise on Safe Haven Demand”