Wednesday, February 28, 2007

Forex News: 28.02.2007 Forex is nervous about fluctuations at stock exchange

“At the moment there is some nervousness at Forex, resulted from yesterday fluctuations at stock exchange. Nevertheless, the drop of major stock indexes, both at developed and developing markets, did not largely influence the currency’s segment, but brought some volatility”, Artem Enshin, NorthFinance analyst comments.

This influenced yen more than other currencies, because the instigator of this situation was China. The decrease of Shanghai index was 8.8%, which resulted from the government’s announcement of limitation of investment into shares and other stock instruments, as well as from the stimulation of capital outflow in danger of the overheating at Chinese stock exchange.

In the course of yesterday American session, yen rose by more than 100 points, to 117.50, but this increase was successfully regained. At the moment yen is traded at 118.50.

British pound sterling also consolidated yesterday. The range was from 1.9675 to 1.9575. With the beginning of European session today, there was slight correction; the British currency is traded at 1.9600.

Euro again rewrote its month maximum and got closer to the level of early January. The maximum was fixed at 1.3260.


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