Swiss National Bank chose to keep the national three-month Libor (interest rate) unchanged at 2.75% after it was increased by 0.25% back in September 2007. After this announcement Swiss franc gained a little against all other major currencies except the Japanese yen. The reason to stop increasing the interest rates further came from two sides: first, Swiss National Bank (SNB) is expecting that GDP growth … “Swiss Libor Rate Unchanged at 2.75%”
Category: Forex news
Central Bank of Chile to Decide on Interest Rate Today
The Central Bank of Chile will be releasing its statement with the target interest rate. The current interest rate is maintained at 5.75% after three rate hikes by 0.25% going in a row from July to September 2007. Majority of the analysts surveyed about the forthcoming rate decision agree that the Chilean interest rate will … “Central Bank of Chile to Decide on Interest Rate Today”
U.A.E., Qatar, Bahrain and Saudi Arabia Cut Rates
The United Arab Emirates decided to cut their bank repository rate by 0.25% to 5.25%; Saudi Arabia decreased its benchmark rate for deposits also by 0.25% to 4.0%; Qatar and Bahrain reduced their deposit rates by the same amount — 0.25% to 4.0%. Kuwait refrained from changing the country’s interest rate, because they’ve already removed their currency’s peg to dollar back in May 2007. This rate change followed the cut by U.S. … “U.A.E., Qatar, Bahrain and Saudi Arabia Cut Rates”
Hungary May Abandon Forint Exchange Limits
Hungarian central bank, Magyar Nemzeti Bank (MNB), will probably find it necessary to bring an end to the limits of the euro/forint rate maximum change (which is at 15% currently) after country’s inflation report for November showed 7.1% growth, while the target inflation rate is just 3.0%. Tamas Vojnits, the analyst of OTP Bank, stated … “Hungary May Abandon Forint Exchange Limits”
Federal Reserve Lowers Interest Rate by 0.25%
The U.S. Federal Open Market Committee lowered its interest rate for open market operations by 25 basis points to 4.25%, while the discount rate for central bank to banks type of lending lending was also cut by 0.25% to 4.75%. This decision was much of a surprise to economists, because they expected a rate cut by 0.50% in both rates as the sure way to fight the menace of recession and to add some stability to the banking sector. The interest … “Federal Reserve Lowers Interest Rate by 0.25%”
Dollar Firmer Before Fed Rate Decision
Little time remains before today’s FOMC meeting, which will decide the future target interest rate for the U.S. banks. Dollar gained a some weight against euro on some marginal expectations that Federal Reserve will cut rates by just 25 basis points instead of 50 points predicted by the current futures rate. Financial markets expect not only the interest rate decision, but also the FOMC’s statement on the discount … “Dollar Firmer Before Fed Rate Decision”
Intervention Rumor Devalue Rupee
Indian rupee ended the start of the week with falling to 39.41 against the U.S. dollar making it the first rupee’s bearish close after two days of growth. The rupee sellout was caused by the rumor of the Reserve Bank of India intervention in the country’s Forex market. It wasn’t the first time for Indian … “Intervention Rumor Devalue Rupee”
Australian Dollar Rises on Global Economy Optimism
Aussie was on a rising edge today on the better investors sentiments, spurred by the recent stock markets growth. Australian dollar gained against both dollar and Japanese yen — its main carry trade counterparts. Going through the upper average range of the previous week for AUD/USD was significantly helped by the yen depreciation, based on the new wave of carry trade entries. If Federal Reserve will decide to lower the interest rate by 50 basis … “Australian Dollar Rises on Global Economy Optimism”
Chinese Yuan Rushed by Henry Paulson
U.S. Treasury Secretary Henry Paulson is going to visit China again in order to motivate the government to increase the pace of the change in which yuan would appreciate against U.S. dollar and other world currencies. Recently China urged their banks to use the advantage of the globally weak dollar to buy the American assets … “Chinese Yuan Rushed by Henry Paulson”
South Africa Lowers Foreign Purchases
South African Reserve Bank decreased its foreign currency purchases volume almost by a half after the national currency felt significantly against the U.S. dollar in November. Depreciated rand kept country’s central bank from increasing their Forex reserves at the previous pace. On November 27 USD/ZAR crawled up to the highest value since September 21, showing that recent South African Reserve Bank measures to hold the rand’s fast … “South Africa Lowers Foreign Purchases”