The New Zealand dollar went for a third day of losses today on the Forex market, making this week a biggest drop since mid May, as the Reserve Bank of New Zealand Governor Alan Bollard said that he may cut interest rates this year. Bollard kept rate unchanged today at the record high 8.25 percent level. Its kept unchanged since July last year. He also said … “Kiwi Slumps on Interest Rate Comments”
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Australian Dollar Gains on Higher GDP
The Australian dollar benefited today from the better than expected first quarter GDP growth as the Reserve Bank of Australia may start considering interest rate hikes again. The gross domestic product grew 0.6 percent in the first quarter of 2008 in Australia, following fourth quarter 0.7 percent increase and surpassing the median experts estimate value of 0.3 percent gain. In the year-to-year comparison GDP grew 3.6 percent … “Australian Dollar Gains on Higher GDP”
Yen Appreciates on Lehman Worries
The Japanese yen gained today against its usual carry trade counterparts as the markets worried about the Lehman Brothers loss, which might be signaling for a financial crisis deepening. The carry trade was at its uprise last two-three weeks as the subprime crisis has been fading out and investors started to seek more risky assets. Yen was used as a short currency in the … “Yen Appreciates on Lehman Worries”
Pound Posted Biggest Daily Drop in 3 Weeks
The pound sterling posted today its biggest drop against the U.S. dollar since May 7 as the speculations that Bradford & Bingley Plc, the largest mortgage lender in U.K., will have to raise more capital, indicated a worsening in the real estate market crisis. The currency also fell against euro and yen as the investors expected that the Bank of England will show … “Pound Posted Biggest Daily Drop in 3 Weeks”
Aussie Goes Down on Weak Retail Sales
The Australian currency dropped today on Forex as the government bonds rose after the report on the April retail sales showed a decline of this important indicator. The retail sales in Australia slid down 0.2 percent in April, forming a steady downward monthly trend for the growth macroeconomical indicator. A decline in retail sales is now attributed to the extremely tight monetary policy in Australia, spurring belief that the … “Aussie Goes Down on Weak Retail Sales”
Saudi Arabia to Keep Dollar Peg
Saudi Arabias Finance Minister Ibrahim Al-Assaf agreed with the U.S. Treasury Secretary Henry Paulson that the riyals peg to dollar is serving good to the countrys economy and assured him that Saudi Arabia has no plans to unlink the currency. During his four-day visit to the Middle East Paulson was to convince the regional financial officials to abstain from depegging their currencies from dollar and to increase … “Saudi Arabia to Keep Dollar Peg”
Dollar Heads for Second Monthly Gain
Today the U.S. dollar continued to head for its second monthly gain against such currencies as the euro and the Japanese yen as the countrys economical situation showed some improvement over the recent weeks. The second month of growth against the yen can be attributed to both carry trade uprise that has been seen during the last weeks on Forex and the expectations … “Dollar Heads for Second Monthly Gain”
Dollar Sees a Third Day of Growth
The U.S. dollar rose today to highest against the euro since May 20 as the Federal Reserve Bank of Dallas President Richard Fisher said that the interest rate increase is possible on elevated inflation fears. The U. S. currency also continued to rise against the Japanese yen today, as the latter has been falling against the other major currencies on carry trade uprise. The dollar … “Dollar Sees a Third Day of Growth”
Rupee Rose on Earning Conversion
The Indian rupee rose today as the exporters had to convert their overseas earnings after the Indias currency has been losing significantly to the U.S. dollar in May. The rupee recovered from two days of losses this week as the oil continued to drop today, easing the concerns that the commodity importers will have to sell even more rupees for dollars. On the other hand, … “Rupee Rose on Earning Conversion”
Yen Falls against Carry Trade Counterparts
The Japanese yen extended its decline against its traditional carry trade counterparts today as the Asian stock markets soared after the U. S. Memorial Day holiday ended. Yen dropped significantly against the Australian and New Zealand dollars (the favorite high-yielders that usually gain the most form the carry trade popularity) today after the financial market rally in Asia showed … “Yen Falls against Carry Trade Counterparts”