U.S. Dollar Holds Steady but Further Weakening Expected - Wednesday, October 06
In Asian trading today, the U.S. Dollar held steady versus the Japanese Yen, but the market is merely waiting for the greenback to further soften once the Federal Reserve Bank takes additional quantitative easing measures, as most investors anticipate they will.
November 2nd and 3rd will be the next scheduled meeting of the Fed’s Open Market Committee; speculation that additional steps will be taken by the central bankers in an effort to spur on the sluggish economy is practically a foregone conclusion. As reported at 2:50 p.m. (JST) in Tokyo, the U.S. Dollar held at 83.17 Yen, just off Tuesday’s late trading in New York of 83.18 Yen.
Investors will use this week’s release of payroll data to help gauge any potential movements by the Fed. Economists are predicting that non-farms payroll data will show an increase in new jobs by 20,000; in August, approximately 10,000 jobs were shed. Should the forecast prove incorrect, expect that the U.S.
Dollar will be more aggressively sold, with a target of 82.90 Yen, nearing the level at which the Japanese Ministry of Finance intervened. Whether or not Japan will intervene again remains to be seen, as many investors feel certain that it would not be any time soon, given the recent quantitative easing measures taken by the Bank of Japan.
FOMC Cuts by 50-bp, Signals Further Easing
The Federal Reserve cut its benchmark lending rate by 50-basis points to 1% by unanimous vote and also lowered its discount rate by 50-basis points to 1.25%. The currency markets were heavily pricing in the aggressive move with the greenback tumbling against the euro and sterling heading into the decision. The dollar fell by over 700-pips versus the pound from 1.5765 to 1.6473 while dropping from 1.2583 to 1.2990 against the euro.
In the accompanying FOMC policy statement, the Fed delivered a somber assessment of the economy saying “the pace of economic activity appears to have slowed markedly, owing importantly to a decline in consumer expenditures”. The statement also paved the way for additional policy easing at the next meeting in December, revealing expectations for inflation to continue to moderate over the coming quarters. The Fed said “the intensification of financial market turmoil is likely to exert additional restraint on spending, partly by further reducing the ability of households and businesses to obtain credit”. Accordingly, we look for the FOMC to slash rates again in December with a 25-basis point cut bring the year-end benchmark lending rate to 0.75%.
The economic reports released earlier in the session saw headline durable goods orders for September rise by 0.8% reversing from a steep 4.8% decline a month earlier. The excluding transportations figure improved to -1.1% from -3.3% previously. Several key reports are slated for release in the Thursday session, with weekly jobless claims, Q3 advanced GDP, and Q3 core PCE. Weekly jobless claims are seen largely unchanged at 475k, from 478k a week earlier. The advanced Q3 GDP reading is estimated to post a 0.5% decline compared with a 2.8 gain previously.
Yen tanks amid Global Equity Rally
A rebound in the global equity bourses prompted traders to dump the yen across the board. The Japanese currency sold-off sharply from 114.42 against the euro to 122.57 and tumbled to 153.40 from 142.90 versus the sterling. Meanwhile, the greenback was initially higher versus the euro and sterling, hovering near its one-year highs around the 1.24 and 1.55 levels, respectively.
The Conference Board’s October consumer confidence index plunged to a record low at 38.0, sharply missing consensus estimates for a decline to 59.8 from a revised 61.4 from September. The present situation component sank to its lowest level since 1992 at 41.9, posting a steep drop from a month earlier at 61.1. The Case-Shiller home price survey fell by 1.0% in August versus the 0.9% decline in the previous month and posted a steeper 16.6% drop compared from a year earlier at 16.3%. Meanwhile, the Richmond Fed manufacturing survey deteriorated to -26 in October, versus -18 a month earlier. However, the services index improved to -10, up from -15 from the previous month.
The sharp declines in consumer confidence further support calls for a 50-basis point rate cut when the FOMC announces its policy decision tomorrow afternoon. The results for the Fed’s two-day meeting will be released on Tuesday at 2:15pm. We anticipate the FOMC to deliver a 50-basis rate cut, lowering its benchmark lending rate to 1.0%. The accompanying statement will likely emphasize further downside risks to growth and pave the way to another 25-basis point rate cut at its December 16th meeting to 0.75%.
JPY Rallies on Safe Haven Flows
Burgeoning fears of a potentially severe global economic recession continued to prop the dollar and yen higher amid sentiment that the ECB and BoE will need to aggressively ease policy to stimulate their economies. Safe haven flows propped the greenback to 1.2729 versus the euro and 1.6046 against the sterling, while the yen surged to 123.17 to the euro and 154.61 versus the pound. Global equity bourses extended recent losses, with the Dow Jones and Nasdaq trading under heightened volatility and whipsawing by the afternoon session.
Weekly jobless claims released earlier in the session unexpectedly crept higher, edging up to 478k, versus 461k in the previous week. On Friday, the data slated for release include September existing home sales, which seen up slight at 4.93 million units.
EUR, GBP Plunge to Multi-year Lows
Global recessionary fears dominated the market headlines in the Wednesday session, with US equity bourses posting steep losses, crude oil slumping beneath the $70 per barrel level to $67.12 and spot gold at a one-year low to $774.57 per ounce. The greenback and yen benefited from continued safe-haven flows, posting steep gains versus the euro and sterling.
The dollar surged to 1.2737 against the euro for the first time since November 2006. Although the FOMC will likely cut rates by 50-basis points to 1.0% when it meets next week, markets anticipate more aggressive policy easing from the ECB in the near-term to support the struggling economy.
US dollar advances further to 4-day high versus Israeli shekel, Friday, September 26, 2008 1:33:16 PM
Extending early European session`s uptrend, the US currency advanced to a 4-day high of 3.4438 against its Israeli counterpart at about 6:15 am ET. Thereafter, the pair ticked down slightly and as of now is worth 3.4242. The dollar-shekel pair closed yesterday`s deals at 3.4100.
Swiss Franc Lacks Direction With Majors, Friday, September 26, 2008 1:10:25 PM
The Swiss franc posted lackluster performances against its major counterparts on Friday in New York. Traders weighed a report showing the Swiss leading indicator fell less than expected in September.
Indicting continued easing in Swiss economic growth, the KOF leading indicator in September declined further to 0.62 points from a revised 0.73 points in August, the KOF Economic Institute said. The August reading was upwardly revised from 0.68. Economists were looking for a reading of 0.54 for September.
According to the institute, Switzerland`s annual gross domestic product growth will slow in the months ahead. Among the three modules of the KOF indicator, the Core GDP module continued its downward trend. Meanwhile, the construction and banking modules showed a stabilizing effect.
The Swiss franc lacked direction with the dollar on Friday. The pair bounced between 1.0911 and 1.0828 throughout the day, staying below Monday`s multi-week high.
Investors pondered a slew of reports showing U.S. gross domestic product and personal consumption fell unexpectedly in the second quarter, while a University of Michigan survey showed consumer confidence dropped more than expected in September.
Versus the euro, the franc pulled back from a weekly high on Friday. After advancing to 1.5860 by 7:30 am ET, the euro fell back to 1.5909 in the afternoon. Traders digested a report showing French gross domestic product contracted at an expected rate in the second quarter.
Against the pound on Friday, the franc moved with uncertainty. The two currencies moved between 1.9941 and 2.0024, staying above last week`s monthly low.
The Bank of England said it will increase the term of its existing operations to lend US dollar funds against collateral eligible in short-term repos and US Treasuries. Alongside an operation to lend funds overnight, the central bank will lend US$30 billion of funds for one week today. The Bank of England`s overnight dollar repo operations will be US$10 billion on Friday.
Canadian Dollar Shows Mild Strength Versus Majors, Friday, September 26, 2008 12:53:59 PM
The loonie showed mild strength against its major counterparts on Friday in New York, most notably reaching a fresh weekly high against the euro.
Crude oil dropped on Friday as the ongoing problems in the U.S. financial sector could continue to cause traders to feel energy demand could be dragged lower. Light sweet crude for November delivery moved to $105.67, down $2.35 on the session. Prices hit as low as $104.25 in overnight deals.
The Canadian dollar experienced choppy trading with the U.S. dollar on Friday. The pair bounced between 1.0372 and 1.0314 throughout the day, staying just below Thursday`s multi-month high.
Investors weighed a slew of reports showing U.S. gross domestic product and personal consumption fell unexpectedly in the second quarter, while a University of Michigan survey showed consumer confidence dropped more than expected in September.
The loonie climbed to a fresh weekly high versus the euro on Friday. The Canadian dollar advanced to 1.5071 just after 6:00 am ET, up from an early morning low of 1.5164. Traders pondered a report showing French gross domestic product contracted at an expected rate in the second quarter.
Aussie recoups losses against most majors, Friday, September 26, 2008 12:37:35 PM
The Australian dollar strengthened against most of its major counterparts from previous session`s downtrend in New York morning deals on Friday.
After touching a 1-week low of 0.8243 against the US dollar and 0.8545 versus the Canadian dollar at about 3:55 am ET, the Aussie gained ground in New York morning session on Friday. As of now, the Australian currency is trading at 0.8317 against the greenback and 0.8608 versus the loonie.
The U.S. Commerce Department revealed that Gross Domestic Product grew at a rate of 2.8 percent in the April-to-June period. This was slower than the 3.3 percent pace that was reported last month.
The statistics also showed that personal spending advanced at a 1.2 percent rate during the quarter, revised down from the 1.7 percent that was previously estimated.
The Aussie ticked up to 1.7539 against the euro and 88.45 versus the yen by about 10:00 am ET from last session`s weekly lows of 1.7686 and 86.89, respectively. At present, the Aussie is worth 1.7577 against the euro and 88.26 versus the yen.
Japanese yen pares gains against most majors, Friday, September 26, 2008 12:12:14 PM
The Japanese currency pared early gains against most of its major counterparts during New York mid-day trading on Friday.
The Ministry of Internal Affairs and Communications said that core inflation in Japan increased 2.4 percent on year in August, in line with analyst expectations. It also held steady from the July figure, equaling an 11-year high.
Overall nationwide CPI was up an annual 2.1 percent, matching forecasts after a 2.3 percent gain on year in the previous month. Overall inflation gained 0.3 percent on month.
After hitting an 8-day high of 105.05 by about 8:35 am ET, the yen reversed its direction against the US dollar in New York mid-day deals today. Currently, the pair is worth 106.08.
The U.S. Commerce Department revealed that Gross Domestic Product grew at a rate of 2.8 percent in the April-to-June period. This was slower than the 3.3 percent pace that was reported last month.
The Japanese currency trended down against the euro and the British pound in New York morning deals from previous session`s uptrend. As of now, the yen is trading at 154.77 against the euro and 195.14 versus the pound, compared to early 1-week highs of 153.50 and 193.22, respectively.
Against the Swiss franc, the yen weakened to 97.76 by about 10:00 am ET from last session`s 4-day high of 96.63 today. Presently, the franc-yen pair is trading near 97.40.
Global Central Banks Brace For Liquidity Crunch, Friday, September 26, 2008 11:10:04 AM
Friday, the Federal Reserve and leading European central banks announced coordinated measures to address funding pressures. Central banks in Asia Pacific also took measures to boost liquidity.
The Fed along with the European Central Bank, the Bank of England and the Swiss National Bank provided U.S. dollar liquidity with a one-weak maturity. Reiterating that they will continue to work together, the central banks said they are ready to take additional measures as needed to deal with the ongoing pressures in the funding markets.
The latest liquidity boost from global central banks came following a breakdown of talks over a US$700 billion rescue plan for the US financial system. Sentiment in financial markets also took a hit on the news of collapse of U.S. bank Washington Mutual. Late Thursday, JPMorgan Chase & Co. said that it has agreed to acquire all deposits and assets of Washington Mutual for about $1.9 billion, after the struggling company was seized by regulators in what is considered as the largest bank failure in U.S. history.
In a statement, the Fed said the Federal Open Market Committee authorized a $10 billion increase in its temporary swap facility with the ECB and a $3 billion increase in its facility with the SNB. These expanded facilities will support the provision of U.S. dollar liquidity in amounts of up to $120 billion by the ECB and up to $30 billion by the SNB.
Together, these changes represent a $13 billion addition to the $277 billion previously authorized swap deals with other central banks. Previously, the Fed had authorized swap lines with the Bank of Japan ($60 billion), the Bank of England ($40 billion), the Reserve Bank of Australia ($10 billion), the Bank of Canada ($10 billion), the Bank of Sweden ($10 billion), the National Bank of Denmark ($5 billion), and the Bank of Norway ($5 billion). The Fed said these arrangements have been authorized through January 30, 2009.
The actions were in response to the crisis at U.S. financial firms, which took excessive bets on mortgage-backed investments resulting in the write off of billions of dollars of assets. The troubled U. S. investment bank Lehman Brothers went bankrupt, while Merrill Lynch got sold to the Bank of America in a quickly-negotiated $50-billion transaction. Meanwhile, the U.S. government stepped in to save insurer AIG from sinking. The Fed extended an $85 billion loan, essentially nationalizing the firm. Further, investment banks Goldman Sachs and Morgan Stanley converted themselves into regulated commercial banks.
In the latest move, the ECB decided to provide US dollar one-week funding over the quarter end to European banks, applying a variable rate tender procedure and with an intended volume of US$35 billion. The bank received bids worth US$82.495 billion from 52 banks. The bank offered the funds at a marginal rate of 4.5%. In its overnight operations, the ECB lent US$30 billion, reduced from an initial US$40 billion, against a bid amount of US$41.38 billion from 33 bidders at a marginal rate of 2.25%.
The SNB allotted US$4.9 billion at a marginal interest rate of 1% in its one-week repo operation, which had twelve banks participating. In its overnight operation, the central bank allotted US$7 billion against a bid amount of US$8.3 billion from 13 banks at a marginal rate of 1.82%.
The Bank of England said in a statement that it will increase the term of its existing operations to lend US dollar funds against collateral eligible in short-term repos and US Treasuries. Alongside an operation to lend funds overnight, the central bank will lend US$30 billion of funds for one week today.
The UK central bank`s overnight dollar repo operation was US$10 billion on Friday, reduced from US$40 billion earlier, against a bid amount of US$12.36 billion. The cover ratio was 1.24 and weighted average accepted rate of 2.208%. In the one-week operation, the bank received US$31.65 billion worth bids and the cover ratio was 1.06%. The weighted average accepted rate was 2.991%.
The BoE added that Bank`s long-term repo operations against extended collateral, including mortgage securities, will for a period be held weekly and enlarged. The first such operation will be held on September 29. It will be an auction for GBP40 billion, for maturity to January 15, 2009.
Meanwhile, the Danish central bank extended the banks and mortgage credit institutes lending facilities given the tight liquidity conditions. The Danmarks Nationalbank said it will introduce a facility offering banks and institutes credit on the basis of their excess capital adequacy and will increases the number of assets accepted as collateral. These measures will come into effect on September 26. The central bank received bids worth US$16.8 billion against an offered amount of US$5 billion in its US dollar auction.
Markets in Asia Pacific also received funds on Friday. Data from the Reserve Bank of Australia offered A$816 million today in repo. Further, the Australian central bank reportedly said it offered US$10 billion in its first US dollar repurchase operation. Further, the Australian government announced that it will invest A$4 billion in two tranches in the domestic residential mortgage-backed securities to boost home lending.
Elsewhere in the region, the Bank of Japan injected 1.5 trillion yen or US$14billion into its money markets.
The South Korean Finance Ministry announced that it would supply at least US$10 billion into the swap market in the coming weeks in order to provide more liquidity. Choi Jong-ku, head of the ministry`s international financial bureau said the central bank would continue to supply dollars whenever necessary.
Hong Kong Dollar Recovers Asian session Losses against US Dollar, Friday, September 26, 2008 7:37:49 AM
The Hong Kong dollar recovered Friday`s Asian session losses against the US dollar during early European deals. The local dollar thus climbed from a 1-week low of 7.7840 to 7.7697 against the greenback by about 4:00 am ET. The pair that closed Thursday`s deals at 7.7785 is now worth 7.7743.
Russian ruble slips to 2-day low against US dollar, Friday, September 26, 2008 6:37:48 AM
Against the US dollar, the Russian ruble edged down to a 2-day low of 25.0850 at about 6:25 am ET Friday. If the Russian currency weakens further, it may likely target the 25.3 level. The dollar-ruble pair closed Thursday`s North American session at 25.0275.
European currency falls to 1-week low against Japanese yen, Friday, September 26, 2008 6:09:45 AM
Extending Asian session downtrend, the European currency declined to 1-week low against the Japanese yen and a 3-day low versus the Swiss franc during early European deals on Friday. The euro also remained down against the currencies of US and UK.
In economic news, Germany`s import price inflation remained stable in August at its highest level in nearly eight years on higher energy prices.
The Federal Statistical Office said today that the import price index rose 9.3% year-on-year in August, marking the same pace as in July, while quicker than the 8.9% increase in June. Meanwhile, economists had forecast the rate to ease to 9.1%. The August rate was the highest since November 2000. In the same period last year, prices were down 0.6%.
The French economy contracted 0.3% quarter-on-quarter in the second quarter, confirmed the initial estimate, a final report from the statistical office INSEE revealed today. The economy had expanded 0.4% in the first quarter.
The Federal Reserve, the Bank of England, the European Central Bank, or ECB and the Swiss National Bank or SNB revealed today that they are introducing operations to provide U.S. dollar liquidity with a one-week maturity using their reciprocal currency arrangements or swap lines.
The Federal Open Market Committee authorized a $10 billion increase in its temporary swap facility with the ECB and a $3 billion increase in its facility with the SNB. According to the Fed, these expanded facilities will now support the provision of U.S. dollar liquidity in amounts of up to $120 billion by the ECB and up to $30 billion by the SNB.
Against the US dollar, the European currency showed weakness during early deals on Friday. At 3:55 am ET, the euro-dollar pair touched a low of 1.4568, compared to 1.4610 hit late New York Thursday. The pair is now worth 1.4578.
The European currency that closed Thursday`s North American session at 0.7954 against the British pound edged down to 0.7940 at 5:05 am ET Friday.
The Bank of England said today that it will increase the term of its existing operations to lend US dollar funds against collateral eligible in short-term repos and US Treasuries.
Alongside an operation to lend funds overnight, the central bank will lend US$30 billion of funds for one week today. The Bank of England`s overnight dollar repo operations will be US$10 billion on Friday.
Against the Swiss franc, the single currency edged lower during Friday`s early deals. At 3:30 am ET the euro-franc pair slipped to a 3-day low of 1.5880, compared to 1.5937 hit late New York Thursday. The pair is currently quoted at 1.5891.
The Swiss leading indicator in September declined further to 0.62 points from a revised 0.73 points in August, the KOF Economic Institute said today. August`s reading was upwardly revised from 0.68. Economists were looking for a reading of 0.54 for September.
The euro that closed Thursday`s New York deals at 155.70 against the Japanese yen declined to a 1-week low of 153.50 at 3:55 am ET Friday. The euro-yen pair is currently trading at 153.86.
Core inflation in Japan rose 2.4 percent on year in August, in line with analyst expectations, the Ministry of Internal Affairs and Communications said today. It also held steady from the July figure, equaling an 11-year high. Overall nationwide CPI was up an annual 2.1 percent, matching forecasts after a 2.3 percent gain on year in the previous month. Overall inflation gained o.3 percent on month.
Across the Atlantic, the US final second quarter GDP, personal consumption expenditure and the University of Michigan`s confidence survey are scheduled for release later in the New York session.
Dollar weakens versus major Latin American currencies, Thursday, September 25, 2008 4:49:55 PM
The US currency weakened against its major Latin American counterparts during New York trading on Thursday after some significant economic reports were released during morning session turned out to be disappointing.
According to a report released today by the US Department of Commerce that new home sales fell 11.5% to a seasonally adjusted annual rate of 460,000 units in August from the upwardly revised July rate of 520,000. The Commerce Department also said that durable goods orders fell 4.5% in August following a downwardly revised 0.8% increase in July.
The Department of Labor released that jobless claims unexpectedly jumped to 493,000 from the previous week`s revised figure of 461,000.
The US dollar dropped against the Brazilian real during New York trading on Thursday. The greenback fell to a 2-day low of 1.8145 versus the real by about 3:25 pm ET from today`s high of 1.8655. The pair that closed yesterday`s deals at 1.8645 is now worth 1.8210.
The Brazilian Census Bureau (IBGE) reported Thursday that unemployment declined to 7.6 percent in August, compared to 8.1 percent in July.
After hitting a 1-week high of 10.8615 by about 8:00 am ET, the US currency lost ground against its Mexican counterpart in New York afternoon deals on Thursday. At about 3:25 pm ET, the pair slipped to 10.6975, compared to Wednesday`s closing value of 10.8500.Currently, the greenback is trading at 10.72 versus the Mexican peso.
During New York trading on Thursday, the US dollar weakened against the Chilean peso. The pair dropped to 537.05 by about 1:15 pm ET from early high of 541.50. Presently, the pair is trading at 537.28 from yesterday`s New York session close of 541.38. The pair had hit a multi-day high of 545.15 yesterday.
The dollar, which closed yesterday`s New York session at 2158.00 against the Colombian peso, dropped to 2077.50 in New York afternoon session today.
US dollar pares recent gains against most majors, Thursday, September 25, 2008 4:12:35 PM
The US currency pared recent gains against most of its major counterparts during New York afternoon deals on Thursday. As of now, the greenback is trading near 1.4627 against the euro, 1.0898 versus the Swiss franc, 106.39 versus the Japanese yen, 1.8393 against the British pound and 0.8363 versus the Aussie.
Dollar weakens versus Chilean peso, Thursday, September 25, 2008 3:37:41 PM
During New York trading on Thursday, the US dollar weakened against the Chilean peso. The pair dropped to 537.05 by about 1:15 pm ET from early high of 541.50. Presently, the pair is trading at 537.28 from yesterday`s New York session close of 541.38. The pair had hit a multi-day high of 545.15 yesterday.
US dollar eases from 1-week high against Mexican peso, Thursday, September 25, 2008 3:26:12 PM
After hitting a 1-week high of 10.8615 by about 8:00 am ET, the US currency lost ground against its Mexican counterpart in New York afternoon deals on Thursday. Currently, the greenback is trading at 10.70 versus the Mexican peso, compared to Wednesday`s closing value of 10.8500.
Kiwi declines against US dollar, Thursday, September 25, 2008 2:54:07 PM
Extending European deal`s downtrend, the New Zealand dollar declined against the US dollar during New York trading on Thursday. As of 2:45 pm ET, the kiwi dropped to 0.6798 versus the greenback, compared to early high of 0.6908. Presently, the kiwi-buck pair is worth 0.6817.Currently, the kiwi is trading near 22.62 versus the yen and 1.2248 against the Aussie.
Greenback drops to 2-day low versus Brazilian real, Thursday, September 25, 2008 2:44:27 PM
The US dollar dropped against the Brazilian real during New York trading on Thursday. The greenback fell to a 2-day low of 1.8170 versus the real by about 2:30 pm ET from today`s high of 1.8655. The pair that closed yesterday`s deals at 1.8645 is now worth 1.8220.
The Brazilian Census Bureau (IBGE) reported Thursday that unemployment declined to 7.6 percent in August, compared to 8.1 percent in July.
Dollar Moves Higher Against Major Rivals, Thursday, September 25, 2008 1:58:46 PM
The U.S. dollar gained on other majors as the U.S. government`s bailout plan may be nearing a solution. The greenback moved away from monthly lows against the euro and sterling and also gained on the yen and franc.
The dollar surged in afternoon trading and hit a three-day high before easing back. The greenback touched as high as 1.4559 giving back some of the gains and moving to 1.4588. The GfK consumer climate survey found that the German consumer sentiment index for October increased to 1.8 points from September`s revised 1.6 points.
The greenback gained sharply against the sterling, hitting as high as 1.8304 in the mid-afternoon. The gain took the greenback away from the five-week low of 1.8668 it reached earlier in the morning.
The dollar gained on the yen, reaching 106.71 in the mid-afternoon, and also climbed to 1.0917 against the Swiss franc. The greenback was mildly lower at 1.0341 against the Canadian loonie.
US dollar eases from 2-day high versus South African rand, Thursday, September 25, 2008 1:56:26 PM
After hitting a 2-day high of 8.2153 by about 7:50 am ET, the US currency declined against the South African rand in New York deals on Thursday. The dollar-rand pair dropped to 8.0825 at about 10:35 am ET from Wednesday`s New York session close of 8.1733. As of now, the pair is trading at 8.1200.
The Statistics South Africa reported on Thursday that producer price index rose 19.1% in August, faster than the 18.9% increase in July, but slower than the 19.3% rise expected by analysts. Export prices rose 7.8%, while import prices increased 23%.
US dollar weakens against Romanian Leu, Thursday, September 25, 2008 1:34:13 PM
The US currency weakened against its Romanian counterpart in late European deals on Thursday. The dollar-Leu pair declined to 2.5001 by about 7:05 am ET, compared to yesterday`s closing value of 2.5029.
Thursday, the Board of the National Bank of Romania decided to maintain its monetary policy rate unchanged at 10.25% per annum. The decision matched economists` expectations.
Dollar Advances Against Most East European Currencies, Wednesday, September 24, 2008 7:35:36 AM
The dollar advanced against the Czech koruna, Slovakian koruna and Polish Zloty during early deals on Wednesday. But the dollar weakened against the Turkish lira and the Hungarian forint, but moved range-bound versus the Estonian kroon
From US, the existing home sales report is scheduled at 10:00 am ET today. The US Federal Reserve Chairman Ben Bernanke`s testimony at Congress`s Joint Economic Committee is also scheduled at 10:00 am ET.
The dollar climbed to a 2-day high of 16.5750 against the Czech koruna by about 7:00 am ET Wednesday. The pair was worth 16.4800 at Tuesday`s close.
Against its Turkish counterpart, the dollar showed weakness during Wednesday`s early deals. At about 3:10 am ET, the dollar-lira weakened to 1.2374, compared to Tuesday`s closing value of 1.2453. Thereafter, the dollar has gained slightly and is presently trading at 1.2423.
The Turkish statistical office, Turkstat said the Production Workers Index rose 0.6% year-on-year and stood at 85.8 in the second quarter from 86.2 recorded in the first quarter. In the first quarter, the number of production workers was up 1.7%. A year-ago, the index was up 2%.
Against the Hungarian forint, the dollar fell after rising to a 2-day high of 164.64 by about 4:05 am ET. Presently the pair is trading at 164.07, compared to Tuesday`s closing value of 164.76.
In economic news, the volume of retail sales in Hungary declined year-on-year in July, a report by the Hungarian Statistical Office said today.
Retail sales volume fell a calendar-adjusted 1.8% in July compared with a 1.9% decline in June. The sales volume at current prices increased to HUF 556.7 billion from HUF 535 billion in the previous month. On a monthly basis, retail sales declined a seasonally and calendar adjusted 0.1% in July compared with a 0.3% fall in the previous month.
The US currency that was worth 20.6720 against the Slovakian koruna at yesterday`s close, hit as high as 20.6850 by about 7:00 am ET Wednesday.
The US dollar started ticking up against the Polish Zloty by about 2:45 am ET Wednesday. The dollar climbed from 2.2430 to 2.2697 by about 7:20 am ET. The pair was worth at 2.2607 Tuesday`s close.
The greenback largely moved sideways against the Estonian kroon during Wednesday`s early trading. The greenback largely bounced between 10.6850 and 10.6420, compared to 10.6470 hit late yesterday in New York. As of now, the pair is trading at 10.66.
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.
US dollar hits 2-day high against Czech Koruna, Wednesday, September 24, 2008 6:22:37 AM
Against the Czech Koruna, the US dollar edged higher during early deals on Wednesday. At 6:10 am ET, the dollar-koruna pair reached a 2-day high of 16.5480, compared to 16.48 hit late New York Tuesday. If the pair gains further, 16.60 is seen as the next target level.
Icelandic krona slides to 5-day low against US dollar, Wednesday, September 24, 2008 5:47:03 AM
Against the US dollar, the Icelandic krona traded lower during early deals on Wednesday. At about 5:25 am ET, the krona declined to a 5-day low of 95.26 per dollar, compared to 94.67 hit late New York Tuesday. If the krona drops further, 95.7 is seen as the next target level.
A report released by the Statistics Iceland showed that CPI rose 14 % on year in September compared to 14.5% rise in August.
British pound rises to new multi-week high against yen, Wednesday, September 24, 2008 5:21:02 AM
Wednesday morning, the British pound reached a new week high against the Japanese yen and 2-day highs against the currencies of Europe and Switzerland. The pound also showed strength against the US dollar.
Against the US dollar, the British pound gained ground after hitting a low of 1.8507 at 1:35 am ET Wednesday. The pound-dollar pair is currently quoted at 1.8604, compared to 1.8525 hit late New York Tuesday.
The British currency edged down to 0.7928 against the European currency before reversing direction during early European deals on Wednesday. At 4:00 am ET, the pound reached a 2-day high of 0.7892 against the euro, compared to yesterday`s closing value of 0.7912.
The German IFO business conditions survey report for September, the Euro-Zone current account balance data for July and the Italian retail sales report for July released today, likely influenced deals in the euro-pound pair.
The Eurozone current account deficit narrowed to EUR1.7 billion in July on working day and seasonally adjusted basis, the European Central Bank said in a report today. The deficit for June was revised to EUR6.1 billion.
Results of the business confidence survey carried out by the Italian research institute, ISAE showed today that the nation`s business confidence indicator fell to 82.7 in September from 83.3 in August. Economists had expected the index to log a reading of 83.3. The September reading is the lowest October 2001.
German business sentiment fell to 92.9 in September from 94.8 in August, reports said citing a monthly survey from the Munich-based Ifo research institute today. The indicator stood below the expected reading of 94.1.
Against the Swiss franc, the sterling traded higher during early deals on Wednesday. The pound-franc pair that closed Tuesday`s North American session at 2.0127 is currently trading at a 2-day high of 2.0227.
The British currency extended its Asian session gains against the Japanese yen during early European deals on Wednesday. At 3:15 am ET, the sterling-yen pair reached a new multi-week high of 197.48, compared to Tuesday`s close of 195.55. The pair is now worth 197.17.
An index that measures Japanese all-industry business conditions in Q3 was down 10.2 percent compared to the previous quarter, the Ministry of Finance said today in its business survey index. That was higher than the -15.2 percent quarterly decline in Q2.
At 6.00am ET, the Confederation of British Industry is scheduled to release report on distributive trade for September.
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.
Euro extends gains against most majors, hits 2-day high against franc, Wednesday, September 24, 2008 3:29:33 AM
The European currency extended its Asian session gains against the US dollar, the Swiss franc and the Japanese yen. The euro thus reached a 2-day high against the franc. On the other hand, the euro showed choppy trading against the British pound.
The industrial economic situation in France deteriorated further, a monthly business survey published by the statistical office INSEE showed today. The business confidence index eased to 92 in September from 97 in July. The indicator stands eight points below its long-term average and the expected level of 97 in September.
Against the US dollar, the European currency edged higher to 1.4710 during early Asian deals on Wednesday. Thereafter, the euro slipped slightly but rebounded after hitting a low of 1.4648 at 2:05 am ET. The euro-dollar pair is currently trading at 1.4688, compared to 1.4652 hit late New York Tuesday.
The European currency largely bounced between 0.7925 and 0.7909 against the British pound during today`s early deals. The pair is currently trading at 0.7915, compared to 0.7912 hit late New York yesterday.
Against the Swiss franc, the European currency traded higher during early deals on Wednesday. At 3:00 am Eastern Time, the euro-franc pair reached a 2-day high of 1.5971. This may be compared to Tuesday`s closing value of 1.5917.
The euro extended its Asian session gains against the Japanese yen during early European deals on Wednesday. The euro-yen pair is currently trading at 156.18, compared to Tuesday`s closing value of 154.66.
An index that measures Japanese all-industry business conditions in Q3 was down 10.2 percent compared to the previous quarter, the Ministry of Finance said today in its business survey index. That was higher than the -15.2 percent quarterly decline in Q2.
At 4:00 am Eastern Time, the German research institute Ifo is expected to release results of its business climate survey for September. The expectations index is forecast to climb to 87.3 from 87 recorded in August. The business climate index is expected to log 94.1,down from 94.8 in the previous month. At the same time, the current assessment index is predicted to decline to 101.9 from August`s 103.2.
Elsewhere, the European Central Bank is slated to release the Eurozone current account data for July. In June, the seasonally adjusted current account balance had recorded a deficit of EUR8.2 billion. Meanwhile, the unadjusted current account balance was a deficit of EUR1 billion.
The Italian statistical office ISTAT is also expected to release its report on July retail sales at 4.00am ET. Retail sales are expected to increase 0.1% on a monthly basis, reversing a 0.1% rise seen in June. Year-on-year, retail sales are forecast to decline 0.8%, after recording a much bigger fall of 3.4% in June.
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.
Kenyan shilling falls to 6-day low against US dollar, Wednesday, September 24, 2008 2:37:43 AM
At 2:20 am ET Wednesday, the Kenyan shilling declined to a 6-day low of 73.50 against the US dollar. If the shilling drops further, 73.6 per dollar is seen as the next target level. The dollar-shilling pair closed Tuesday`s New York deals at 73.15.
US dollar reverses early Asian session losses against majors, Wednesday, September 24, 2008 1:13:14 AM
During early deals on Wednesday, the US dollar reversed its early Asian session losses against its major counterparts.
Against the European currency, the US dollar gained ground after hitting a low of 1.4710 at 8:10 pm Eastern Time Tuesday. The dollar is currently trading at 1.4668 against the euro, compared to 1.4652 hit late New York yesterday.
The US dollar touched a low of 1.8589 against the British pound at 8:10 pm ET Tuesday. Thereafter, the dollar reversed its direction and is currently trading at 1.8533, compared to yesterday`s close of 1.8525.
The US currency that closed Tuesday`s North American session at 1.0865 against the Swiss franc edged down to 1.0834 during early Asian deals on Wednesday. Thereafter, the dollar-franc pair gained ground and reached 1.0882 at 12:45 am ET.
Against the Japanese yen, the US dollar slipped to 105.37 before gaining ground at 9:00 pm ET Tuesday. The dollar-yen pair that closed yesterday`s New York deals at 105.56 is now worth 105.80.
An index that measures Japanese all-industry business conditions in Q3 was down 10.2 percent compared to the previous quarter, the Ministry of Finance said today in its business survey index. That was higher than the -15.2 percent quarterly decline in Q2.
Traders in Europe await the release of the German IFO business conditions survey report for September, the Euro-Zone current account balance data for July and the Italian retail sales report for July.
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.
Greenback gains versus majors following Richmond Fed`s manufacturing survey, Tuesday, September 23, 2008 10:14:05 AM
Manufacturing activity in the central Atlantic region weakened further in September, according to the Richmond Fed`s latest survey. The seasonally adjusted manufacturing index decreased to -18 in September from August`s reading of -16, the report said.
The US dollar gained some ground against the rest of majors following the report. As of 10:10 am ET, the dollar was quoted at 1.4747 against the euro, 1.8533 against the pound and 1.0825 against the Swiss franc.
Greenback steady versus majors ahead of Sept. Richmond Fed manufacturing index report, Tuesday, September 23, 2008 9:59:26 AM
The US Richmond Fed manufacturing index for September and the house price report for July have been slated for release at 10:00 am ET. A testimony by the Fed Chairman Ben Bernanke and U.S. Treasury Secretary Henry Paulson at the Senate Banking Committee are also expected during this time period. The US dollar held steady against other major currencies ahead of key reports and testimonies. As of 9:55 am ET, the dollar was quoted at 1.0806 against the franc, 1.4762 versus the euro and 105.71 against the yen
Greenback slips to new 7-week low versus Canadian dollar, Tuesday, September 23, 2008 9:46:11 AM
The US dollar plummeted against its Canadian counterpart on Tuesday morning in New York, setting a new 7-week low of 1.0315 by 9:30 am ET. This came after the report showed that Canadian consumer price inflation accelerated to its fastest annual rate of growth in over five years in August. As of 9:40 am ET, the dollar-loonie pair was quoted at 1.0319.
According to a report released by Statistics Canada today, consumer prices in August grew 3.5% compared to the same month last year, reflecting the fastest pace of growth since March of 2003, when prices rose at an annual rate of 4.2%.
Israeli shekel sets fresh multi-month high against dollar, Tuesday, September 23, 2008 9:21:13 AM
The Israeli shekel jumped to a fresh multi-month high against the US dollar on Tuesday morning in early New York trading. By 9:10 am ET, the shekel set 3.3965 against the dollar, the highest level since July 18 of this year. The dollar-shekel pair that closed yesterday`s trading at 3.4054 is currently worth 3.4030.
Traders continued to mull the Bank of Israel`s decision yesterday to leave its short-term borrowing costs unchanged. The central bank`s decision to retain its key lending rate at 4.25% was widely expected.
Euro weakens against Swiss franc, Tuesday, September 23, 2008 8:30:41 AM
Extending today`s early European session downtrend, the euro dropped to 1.5920 against its Swiss counterpart by 8:20 am ET Tuesday from 1.5959 hit around 4:05 am ET. Currently, the euro-franc pair is trading at 1.5926.
South African rand falls to 5-day low against US dollar, Tuesday, September 23, 2008 7:30:38 AM
Against the US dollar, the South African rand declined to a 5-day low of 8.2150 at 7:05 am ET Tuesday. If the South African currency drops further, 8.22 is seen as the next target level. The dollar-rand pair closed Monday`s New York deals at 7.9894.
The South Africa`s rand weakened after a government report showed that the nation`s retail sales dropped for a fifth month in July, falling an annual 4.6 percent, after declining a revised 1.5 percent in June.
The CPIX inflation rate rose to 13.6 percent in August from 13 percent in July. Analysts expected inflation of 13.3 percent. Prices rose 0.9 percent in the month.
Canadian dollar rises following August CPI Report, Tuesday, September 23, 2008 7:03:18 AM
Following the release of the Canadian August CPI Report, the Canadian dollar rose against its major counterparts. As of now, the loonie is trading at 1.0317 against the US dollar, 0.8710 against the Aussie, 102.20 against the yen and 1.5252 against the euro.
US dollar advances to new multi-month high versus Romanian Leu, Friday, September 05, 2008 12:23:20 PM
Extending yesterday`s uptrend, the US currency advanced against its Romanian counterpart in New York morning trading on Friday. At about 7:05 am ET, the pair climbed to a new multi-month high of 2.5318, compared to yesterday`s close of 2.4699. Currently, the pair is trading at 2.5226.
The Romanian industrial production rose at a pace of 5.1% annually in July, up from 4% recorded in June, the National Institute of Statistics said Friday.
Compared to the previous year, production in the mining and quarrying sector increased 8.4%, followed by a 4.8% rise in the industry processing sector output. Output in the utility sector grew 4.2%.
Month-on-month, industrial production declined 1.4% in July, compared with a 1.5% rise seen in June.
Euro ticks down to 4-1/2 month low versus Swiss franc, Friday, September 05, 2008 11:08:32 AM
The European single currency slipped to a 4-1/2 month low of 1.5816 against the Swiss franc by 11:00 am ET Friday, down from today`s early European session high of 1.5922. The euro-franc pair, which closed yesterday`s North American session at 1.5889, is currently worth 1.5835.
Aussie declines further versus majors; sets fresh multi-year lows versus euro and yen, Friday, September 05, 2008 9:40:49 AM
At 10 a.m. ET, the Ivey Business School will release their Canadian PMI for August. Economists expect the index to decline to 61.8 from 65.5 in July. The Canadian dollar held steady versus the other major currencies ahead of the report. As of 9:55 am ET, the loonie was quoted at 1.5225 versus the euro, 100.32 against the yen and 1.0637 versus the buck
Greenback drifts lower versus majors amid August non-farm payrolls report, Friday, September 05, 2008 8:40:22 AM
The US dollar staged a sharp fall against its major opponents in the early New York session on Friday, following the release of non-farm payrolls report for August. The dollar declined to a new multi-week low of 105.55 against the yen by 8:32 am ET, compared to yesterday`s close of 107.10. The greenback also ticked down to 1.1094 against the franc, 1.4301 versus the euro and 1.7686 versus the pound during this time.
Greenback ticks lower versus euro as unemployment rises to 6.1 percent, Friday, September 05, 2008 8:40:21 AM
The dollar ticked lower versus the euro after the release of government data showing that US non farm payrolls dropped 84,000 in August from a revised loss of 60,000 in July. The unemployment rate came in at 6.1 percent, its lowest level since 2003.
The buck pulled back from its 10-month high of 1.4195 versus the euro, slipping to 1.4275 minutes after the release of the jobs data.
US dollar climbs to new multi-month high against Polish zloty, Friday, September 05, 2008 7:25:29 AM
Against the Polish zloty, the US dollar traded higher during early deals on Friday. At about 7:00 am ET, the dollar-zloty pair hit a new multi-month high of 2.4183, compared to 2.3835 hit late New York Thursday.
US dollar sets 2-day low against Pakistan rupee, Friday, September 05, 2008 7:12:09 AM
The US dollar edged down against the Pakistan rupee during early deals on Friday. At about 2:20 am ET, the dollar-rupee pair declined to a 2-day low of 76.78, compared to 76.65 hit late New York Thursday. As of now, the pair is quoted at 76.38.
