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”
Author: admin_mm
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”
Fundamental Overview – Market Movers This Week – 6/21/2010
The U.S. Dollar gave even more of its recent gains last week after the Spanish bond auction eased market debt fears in the Eurozone and China announced its shift to a new exchange rate policy with greater flexibility. Also, European exchange rates traded correctively higher after much of the bad news for those currencies already … “Fundamental Overview – Market Movers This Week – 6/21/2010”
Demand for Safety Drives Japanese Yen Higher
The Japanese yen rose today on the speculations that European crisis strengthens as some E.U. banks face the funding problems, increasing the appeal of the yen as the safe currency. Christian Noyer, the European Central Bank governing council member, said yesterday: some banks have started facing increasing funding problems. The situation reflects a general state of uncertainty which, left unchecked, could have significant consequences on financial stability. The Great Britain is … “Demand for Safety Drives Japanese Yen Higher”
Yuan Retreats as Central Bank May Intervene to Curb Gains
The Chinese yuan retreated today, after it gained yesterday on the signals of the end for the dollar’s peg, as China’s central bank might intervene to curb the currency’s appreciation. Yesterday China signaled that it may allow more flexibility in the exchange rate of its currency to deflect the accusations of its trading partners and to keep in check the growing inflation. The Peopleâs Bank of China prefer the gradual appreciation, though, and ready to curb any “excessive” gains. USD/CNY … “Yuan Retreats as Central Bank May Intervene to Curb Gains”
Loonie Falls vs. Greenback, Strengthens vs. Euro & Yen
The Canadian dollar fell against its U.S. counterpart today on the renewed concerns about the European debt crisis, but sustained its gains versus the euro and the Japanese yen after China signaled that it might end the yuan’s peg to the U.S. dollar, bolstering the confidence in the growth-linked currencies. On the positive side today we have, together with the news from China, rising commodity prices. Crude oil traded near $77.54 … “Loonie Falls vs. Greenback, Strengthens vs. Euro & Yen”
New Zealand Dollar Profits from Stronger Yuan
The end of the two-year yuan’s peg to dollar weakened some currencies and strengthened others; among later can be the New Zealand dollar. The New Zealand currency already benefited from the fast growth of China’s economy as China is one of major trading partner of New Zealand. The stronger Chinese economy means more imports in China, this in turn means more profits for New Zealand exporters. The stronger yuan also should help … “New Zealand Dollar Profits from Stronger Yuan”
Dollar May Benefit From End of Yuan’s Peg
The U.S. dollar strengthened today on the speculation that there will be less demand for the non-Asian currencies after China relax its two-year peg. This move should weaken the currencies, which benefit from the reserves diversification, especially the euro. The Peopleâs Bank of China said that there wouldn’t be large-scale moves, the currency will be gradually allowed more flexibility. EUR/USD traded near 1.2396 as of 11:52 GMT today … “Dollar May Benefit From End of Yuan’s Peg”