Wednesday, September 24, 2008

US dollar hits 5-day high against Icelandic krona, Wednesday, September 24, 2008 7:22:11 AM

During early European deals on Tuesday, the US dollar climbed to a 5-day high against the Icelandic krona. The dollar also showed strength against its Scandinavian counterparts.

Against the Swedish krona, the US dollar traded higher during early deals on Wednesday. At 5:30 am ET, the dollar-krona pair reached a high of 6.5855, compared to 6.5766 hit late New York Tuesday. The pair is currently trading at 6.5774.

The Swedish central bank and the Federal Reserve agreed today on a US$10 billion swap facility in order to improve liquidity conditions in global financial markets. The swap facility will expire on January 30, 2009.

Sweden`s economic tendency indicator, which measures business and consumer confidence in the economy, rose marginally to 86.0 in September from 85.6 in August, results of the latest economic tendency survey released by the National Institute of Economic Research, or NIER, showed today.

Further, the survey found that confidence in the Swedish manufacturing sector continued to decrease in September. The corresponding indicator fell to minus 14 from minus 12 in August. In July, the indicator logged minus 11. The September reading was in line with the consensus forecast.

The confidence indicator for the Swedish industry as a whole declined to minus 2 from minus 1 in August and plus 4 in July. On the other hand, the consumer confidence index rose to minus 14.4 from minus 16.5, while economists were expecting the index to fell to minus 17.

The US currency that closed Tuesday`s North American session at 5.6157 against the Norwegian krone edged higher to 5.6239 at 3:55 am ET Wednesday. The dollar-krone is now worth 5.6115.

Against its Danish counterpart, the greenback showed strength during Wednesday`s early deals. At about 4:05 am ET, the pair reached 5.0972, compared to Tuesday`s closing value of 5.0938. The pair is currently quoted at 5.0850.

Denmark`s national statistics office said today that the consumer confidence index rose to minus 11.1 in September from minus 12.2 in August.

The US dollar traded higher against the Icelandic krona during today`s early deals. At 5:35 am ET, the dollar-krona pair hit a 5-day high of 95.49, compared to Tuesday`s North American session close of 94.67.

The Statistics Iceland announced that the Consumer Price Index or CPI rose 14% year-on-year in September, smaller than the 14.5% rise recorded in August, which was its fastest pace since June 1990. Economists had expected for an increase of 14.2%. This was the first decline in the annual inflation rate since January.

The greenback that closed yesterday`s New York deals at 3.4201 touched a low of 3.4083 against the Israeli shekel at 5:45 am ET Wednesday. The dollar-shekel pair is currently trading at 3.4143.

The US dollar largely bounced between 8.17 and 8.10 against the South African rand during Wednesday`s early deals. The dollar-rand pair that closed Tuesday`s deals at 8.2037 is now worth 8.1525.

In central bank action, the Norges Bank is expected to announce its latest interest rate decision at 8am Eastern Time.
The economic reports scheduled for release in the U.S. include existing home sales for August and MBA mortgage applications for September. Additionally, investors may focus on Fed Chairman Ben Bernanke`s testimony at Congress` joint economic committee.


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