U.S. dollar is likely to replace Japanese yen on the carry trade arena as the short currency. According to the currency pairs yield analysis, Great Britain pound, Brazilian real and Hungarian forint combined made over 17% against dollar this year, while buying those currencies against yen yielded only 9%. Anticipated recession in U.S. is one of the reasons fueling dollars decline. Federal Reserve had to cut rates … “Future of Carry Trade – U.S. Dollar”
Author: admin_mm
ZAR/JPY Going South
Another carry trade crisis victim — South African rand saw its bad times during the past week. ZAR closed on its lowest rate against Japanese yen (which can be easily called the “favorite” of the week) since the mid September — 15.8549 yens per rand. Given the 10.5% yield on the overnight interest kept in South African currency and Japanese yen’s 0.5%, ZAR/JPY make a perfect pair to earn nearly … “ZAR/JPY Going South”
Rupee Low After Intervention
Indian currency ended at its lowest rate against U.S. dollar on Friday, being on its weakest since October 23. USD/INR closed on 39.71 level yesterday, after international investors and global corporations were moving out their funds out of Indian currency. Concerned with global volatility and elevated risks in emerging economies, traders sold rupee for dollar … “Rupee Low After Intervention”
Oman Has No Plans to End Peg to Dollar
Hamud Bin Sangur al-Zadjali, the Central Bank of Oman Governor, spoke during European Banking Congress in Frankfurt today, speaking that Oman has no plans to end its peg to U.S. dollar. While some GCC countries already ended peg to dollar (Kuwait in May, 2007) and some countries planning to do so by the end of … “Oman Has No Plans to End Peg to Dollar”
Canada’s Finance Minister Satisfied with Lower CAD
Jim Flaherty, Canadian Minister of Finance, said today that he is glad to see Canadian dollar losing against U.S. dollar on Forex, after there were almost three month of unstoppable appreciation of the Canada’s currency. As the rallying Canadian dollar’s appreciation hurts exporters, Canada’s economy could be at the risk, giving government another concern to worry about. Minister spoke at the Oshawa Chamber of Commerce at the meeting entitled “Moving Canada … “Canada’s Finance Minister Satisfied with Lower CAD”
EUR/USD Spikes To New Maximum
Dollar slid to its new historical bottom rate against euro hitting 1.4967 on EUR/USD. Missing the marvelous 1.5000 pint by about 30 pips, EUR/USD retraced by 150 points back as the Forex traders consolidated their profits on the rally. Another week without any supporting for dollar may probably break this resistance. As it seems the … “EUR/USD Spikes To New Maximum”
Canadian Dollar Dips On Bada Statistics
Yesterday Canadian dollar reached its monthly minimum levels after the macroeconomic statistics were released by Canada’s National Statistics Agency. September 2007 retails sales fell by 0.2 percents compared to previous month. USD/CAD traded at 0.9923 on Forex as the data was released. Given such a pessimistic background for the next Bank of Canada meeting, which will be held on 4 December, overnight interest rates might be cut by 25 … “Canadian Dollar Dips On Bada Statistics”
U.K. Monetary Policy Committee Minutes Released
Minutes of the last (7 and 8 November) Bank of England Monetary Policy Committee were released today, showing the vision for the U.K. economy by the committee members. As the interest rates decision was known by the traders already — BoE left rates unchanged at 5.75%, the major interest was drawn to the exact voting details. Seven committee members voted for the rates to remain as they were, while two other members — David Blanchflower (who voted for the rates … “U.K. Monetary Policy Committee Minutes Released”
Fedâs Projections â Uncertain
Federal Reserve’s FOMC published its first meeting minutes to include the 3-year projections of the committee members regarding the GDP growth, consumer prices inflation and unemployment rate. While the average projection expectations didn’t differ greatly (except for the year 2008) from this year’s results, the uncertainty of the inflation projections spoke for itself — Fed is unsure of the impact the interest rates manipulations will have on the consumer prices growth. The wide range for the next … “Fedâs Projections â Uncertain”
Chinese Yuan Shows Some Growth
Chinese yuan gained against dollar during today’s trading session in Shanghai, reaching 7.425 yuan/dollar rate. This appreciation of yuan was caused mainly by the falling U.S. dollar against euro, pound and other currencies. While free market laws try to pull up yuan against dollar and other world currencies, government of China does a lot of … “Chinese Yuan Shows Some Growth”