The Japanese yen tumbled today, posting the biggest decline in more than two years, as the nations of the Group of Seven announced that they will jointly intervene in the foreign-exchange markets. Japan’s Finance Minister Yoshihiko Noda said that his country intervened and other nations would do the same when their markets would open. This is the first such intervention in more than a decade. Today’s slump of the yen was biggest … “Yen Slumps Because of Intervention”
Author: admin_mm
Canadian Dollar Rallies with Commodities
The Canadian dollar gained today as commodities, including crude oil, the main export of Canada, rallied amid the speculation that the global recovery is accelerating. April delivery for crude oil rose 3.5 percent to $101.40 per barrel in New York on concerns that the tension in Middle East and North Africa will disrupt supplies of crude. The Thomson Reuters/Jefferies CRB Index of raw materials gained as much as 3.3 percent, the biggest intraday advance … “Canadian Dollar Rallies with Commodities”
SNB Holds Libor Rate, Franc Fluctuates
The Swiss franc fluctuated today after jumped on the previous trading session and fell at the beginning of today’s session, while the Swiss central bank left its benchmark interest rate unchanged. The Swiss National Bank maintained the London Interbank Offered Rate (Libor) unchanged at 0.25 as was predicted by analysts. Today’s decline of the franc hasn’t offset yesterday’s gain on the concerns about the situation in Japan. USD/CHF traded today at 0.9025 as of 14:13 GMT after … “SNB Holds Libor Rate, Franc Fluctuates”
Malaysian Ringgit Falls as Fear of Radiation Leak in Japan Grows
The Malaysian ringgit weakened today as the nuclear crisis in Japan caused worries that the global economic recovery will slow, reducing appeal of assets of the Asian countries. Foreign governments has started evacuating of the citizens from Tokyo after US Nuclear Regulatory Commission stated yesterday that the Fukushima Dai-Ichi power plant is releasing “extremely high” levels of radiation that can be dangerous to life. The MSCI Asia-Pacific Index of shares … “Malaysian Ringgit Falls as Fear of Radiation Leak in Japan Grows”
Fear Radiation Will Reach the US
The situation in Japan’s troubled Fukishima nuclear reactors isn’t improving. There are fears that the radiation from the plants will not only hurt Japan, but will also cross the Pacific and reach the United States.Nuclear radiation might eventually reach Europe as well. This won’t be in dangerous levels like in Japan (and especially in the … “Fear Radiation Will Reach the US”
Risk Aversion Decreases Attractiveness of Canadian Dollar
The Canadian dollar fell against the euro as risk aversion, that followed the earthquake, the tsunami and the radiation leak from the nuclear plant, decreased appeal of currencies linked to growth. The currency pared losses versus its US counterpart, rising today after falling for two day. The nuclear agency of the United Nations plans an emergency meeting to find a way to deal with the crisis at Japanâs Fukushima Dai-Ichi power plant. The Standard & Poorâs 500 … “Risk Aversion Decreases Attractiveness of Canadian Dollar”
Protests in Qatar, UAE and Saudi Arabia Feared
The situation in Bahrain is deteriorating quickly. The intervention of forces from Saudi Arabia and the United Arab Emirates could hit these countries, as well as hit Qatar, the home of Al-Jazeera. All these countries have significant Shiite populations. Iran, that is blamed for fueling the Shiite protests in Bahrain, might push the Shiites in … “Protests in Qatar, UAE and Saudi Arabia Feared”
Euro Falls After Moody’s Downgrades Portugal’s Rating
The euro slipped today after Moody’s cut the debt rating of Portugal, increasing concerns about the financial crisis in the European Union. Moody’s Investors Service downgraded Portugal’s long-term government bond ratings from A1 today to A3, saying that the nation “faces significant challenges, not least a less supportive economic environment”. The agency assigned a negative outlook because of “subdued growth prospects” and concern that Portugal’s government wonât be … “Euro Falls After Moody’s Downgrades Portugal’s Rating”
Norwegian Krone Boosted by Prospect of Higher Interest Rates
The Norwegian krone rose today on the speculation that the policy makers will speak about increasing of the interest rates at today’s meeting. Analysts say that the Norges Bank will favor tightening in the future, but this month the bank will leave its overnight deposit rate at 2 percent. Norwayâs currency has risen 1.6 percent this year. USD/NOK fell from 5.6634 to 5.6544 today as of 12:53 GMT. If you have … “Norwegian Krone Boosted by Prospect of Higher Interest Rates”
The yen undercurrents
The main bullish case put together for the yen right now is that Japan will see an unprecedented level of repatriation of overseas asset in the wake of the earthquake and tsunami. Drawing comparisons with what happened after the Kobe quake in 1995 is littered with pitfalls, making the case far less clear-cut than many … “The yen undercurrents”