The euro fell for the first time in three days against the dollar on speculation losses at the region's biggest banks will spread amid the credit crisis.
The euro fell versus 13 of the 16 most-traded currencies after Oppenheimer & Co. said UBS AG, Europe's largest bank by assets, will probably report a loss this quarter. European Central Bank policy maker Guy Quaden said in an interview there are ``shockwaves'' from the U.S. credit squeeze, the Wall Street Journal reported today.
``A topping-out process for euro-dollar is taking place,'' said Ian Stannard, a currency strategist in London at BNP Paribas SA, France's biggest bank. ``The move higher for the euro is quite fragile. As equity markets start to pull back, that could undermine support for the euro.''
The euro fell to $1.5817 at 7:21 a.m. in New York, from $1.5845 late yesterday, when it rose 1.3 percent. It was little changed against the yen, at 157.06 yen, after trading as low as 155.89 earlier, its largest loss since March 20. The dollar was at 99.30 yen, from 99.20, and rose to 0.9920 Swiss franc, from 0.9888 yesterday.
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Showing posts with label currency. Show all posts
Showing posts with label currency. Show all posts
Thursday, March 27, 2008
Thursday, March 20, 2008
Dollar Rises Against Euro, Yen as Oil, Commodity Prices Decline
The dollar rose to its strongest in a week against the euro as speculation a global economic slowdown will reduce demand for raw materials pushed gold and oil lower.
Europe's common currency declined after Credit Suisse Group said it may have a loss this quarter because of writedowns on debt securities. The dollar climbed to the highest level in more than a week versus the currencies of its major trade partners as crude, which is priced in the U.S. currency, dropped after a government report showed weaker demand for fuel.
``The main driver is the liquidation of long commodity positions, specifically crude oil,'' said Lee Hardman, a currency strategist in London at Bank of Tokyo-Mitsubishi UFJ Ltd. ``That's potentially been a positive for the dollar on the back of the drop in commodity prices.''
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Europe's common currency declined after Credit Suisse Group said it may have a loss this quarter because of writedowns on debt securities. The dollar climbed to the highest level in more than a week versus the currencies of its major trade partners as crude, which is priced in the U.S. currency, dropped after a government report showed weaker demand for fuel.
``The main driver is the liquidation of long commodity positions, specifically crude oil,'' said Lee Hardman, a currency strategist in London at Bank of Tokyo-Mitsubishi UFJ Ltd. ``That's potentially been a positive for the dollar on the back of the drop in commodity prices.''
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Monday, March 17, 2008
Dollar dives to near 13-year low vs. yen
Greenback plunges after Federal Reserve slashes discount rate at emergency meeting.
The dollar nose-dived to its lowest levels in 12 1/2 years Monday in Asia, falling below 96 yen as the Federal Reserve's rate cut failed to calm market fears about more U.S. bank writedowns.
The Fed on Sunday cut its discount rate, or its lending rate to financial institutions, by a quarter point to 3.25%.
The move only managed to give a temporary lift to the U.S. currency before it began its steep decline.
"The Fed's action is needed but it leaves the current main market problems unresolved, and there seems to be nothing that can stop this [dollar-selling] flow for now," said Masafumi Yamamoto, head of foreign exchange strategy at Royal Bank of Scotland.
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The dollar nose-dived to its lowest levels in 12 1/2 years Monday in Asia, falling below 96 yen as the Federal Reserve's rate cut failed to calm market fears about more U.S. bank writedowns.
The Fed on Sunday cut its discount rate, or its lending rate to financial institutions, by a quarter point to 3.25%.
The move only managed to give a temporary lift to the U.S. currency before it began its steep decline.
"The Fed's action is needed but it leaves the current main market problems unresolved, and there seems to be nothing that can stop this [dollar-selling] flow for now," said Masafumi Yamamoto, head of foreign exchange strategy at Royal Bank of Scotland.
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Friday, March 14, 2008
Dollar under pressure as US outlook darkens
The dollar remains under pressure against all major currencies on fears that the Federal Reserve may need to slash interest rates further to stop the downward spiral in the credit markets.
The greenback was at 100.57 against the yen after breaking below 100 yesterday in a day of wild trading, that set off alarm bells at Japan's Keidanren industry lobby.
It touched a record low of $1.5651 against the euro and came within a whisker of parity with the Swiss franc for the first time in history.
It rebounded somewhat in London today and was trading at $1.5582 by mid morning.
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The greenback was at 100.57 against the yen after breaking below 100 yesterday in a day of wild trading, that set off alarm bells at Japan's Keidanren industry lobby.
It touched a record low of $1.5651 against the euro and came within a whisker of parity with the Swiss franc for the first time in history.
It rebounded somewhat in London today and was trading at $1.5582 by mid morning.
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Wednesday, March 12, 2008
Dollar Falls to Record Low on Concern Fed Package Won't Succeed
The dollar fell to a record below $1.55 per euro as firms from Citigroup Inc. to Goldman Sachs Group Inc. said the Federal Reserve's plan to inject $200 billion into the banking system may fail to break the freeze in money-market lending.
The U.S. currency erased almost half of yesterday's 1.6 percent rally versus the yen, the biggest in six months, which came after the Fed said it would lend Treasuries to financial institutions in return for mortgage debt. Traders bet the Fed will cut rates by as much as three quarters of a percentage point next week to avert a recession, while the European Central Bank keeps borrowing costs unchanged.
``It's difficult for the dollar to gain traction,'' said Paresh Upadhyaya, who helps manage $50 billion in currency assets at Putnam Investments in Boston. ``The Fed is probably running out of options; the market is fixated on interest-rate differentials, which are clearly negative for the dollar.''
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The U.S. currency erased almost half of yesterday's 1.6 percent rally versus the yen, the biggest in six months, which came after the Fed said it would lend Treasuries to financial institutions in return for mortgage debt. Traders bet the Fed will cut rates by as much as three quarters of a percentage point next week to avert a recession, while the European Central Bank keeps borrowing costs unchanged.
``It's difficult for the dollar to gain traction,'' said Paresh Upadhyaya, who helps manage $50 billion in currency assets at Putnam Investments in Boston. ``The Fed is probably running out of options; the market is fixated on interest-rate differentials, which are clearly negative for the dollar.''
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Wednesday, February 20, 2008
Dollar Declines to 2-Week Low Against Euro on Rate Speculation
The dollar fell to the lowest level in two weeks versus the euro on speculation the Federal Reserve will keep cutting its benchmark interest rate, widening the U.S. yield disadvantage with Europe.
The dollar's decline started after the governor of the Bank of France, Christian Noyer, said there is cause for ``optimism'' about economic growth in the euro region. Brazil's real rose to an eight-year high as a boom in exports and the highest inflation-adjusted bond yields in emerging markets lured investors. The pound fell to a one-month low against the euro.
``The U.S.'s deteriorating yield outlook, combined with its worsening underlying fundamentals, is weighing on the dollar,'' said Omer Esiner, a foreign-exchange analyst at currency-trading company Ruesch International Inc. in Washington. ``The U.S. economy is slowing at a very fast pace and that will continue to fuel further dollar-negative interest rate cuts.''
The dollar fell to $1.4726 per euro at 4 p.m. in New York, from $1.4658 yesterday. It declined to as low as $1.4757, the weakest since Feb. 5. The yen was little changed at 158.57 per euro, from 158.63. The dollar declined to 107.68 yen, from 108.23.
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The dollar's decline started after the governor of the Bank of France, Christian Noyer, said there is cause for ``optimism'' about economic growth in the euro region. Brazil's real rose to an eight-year high as a boom in exports and the highest inflation-adjusted bond yields in emerging markets lured investors. The pound fell to a one-month low against the euro.
``The U.S.'s deteriorating yield outlook, combined with its worsening underlying fundamentals, is weighing on the dollar,'' said Omer Esiner, a foreign-exchange analyst at currency-trading company Ruesch International Inc. in Washington. ``The U.S. economy is slowing at a very fast pace and that will continue to fuel further dollar-negative interest rate cuts.''
The dollar fell to $1.4726 per euro at 4 p.m. in New York, from $1.4658 yesterday. It declined to as low as $1.4757, the weakest since Feb. 5. The yen was little changed at 158.57 per euro, from 158.63. The dollar declined to 107.68 yen, from 108.23.
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Tuesday, February 19, 2008
Iran Establishes Non-USD Oil & Gas Trading
The Iranian Oil Bourse, a non-U.S. dollar forum established for the trade of oil, gas and petrochemicals, is set to open for business on Kish Island on Feb. 17, according to EIN News and Iranian television.
The Bourse had been set to open during the week commemorating the anniversary of the Islamic Revolution, said Iran's Foreign Minister Davoud Danesh-Jafari, but the Internet communication breakdown delayed the launch.
The primary trade currency used by the Bourse will be the euro. The Iranian Bourse would establish a euro-based oil marker if successful.
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The Bourse had been set to open during the week commemorating the anniversary of the Islamic Revolution, said Iran's Foreign Minister Davoud Danesh-Jafari, but the Internet communication breakdown delayed the launch.
The primary trade currency used by the Bourse will be the euro. The Iranian Bourse would establish a euro-based oil marker if successful.
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Wednesday, February 13, 2008
OPEC May Drop Dollar for Euro
As I've stated previously, for over 3 decades now, U.S. Oil pricing agreements with OPEC have provided THE foundation for the US dollar's elite status in the world and oil replaced gold (after being dropped by Nixon in 1971) as the backing for the World’s Reserve Currency.
We Americans, however, were never satisfied with just having a good thing, as we wanted our cake and needed to eat it too, so we racked up enormous/un-payable debts to pay for lots of guns and butter, sold toxic securitized AAA rated garbage to our best friends, family and business partners, squandered international goodwill through inept/arrogant foreign policy, and as of late, we’ve thrown all caution and common sense into the wind and are now vigorously trying to hyper-inflate our way out of this current deflationary banking/financial crisis.
Well it was great while it lasted, but the gig is nearly up.
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We Americans, however, were never satisfied with just having a good thing, as we wanted our cake and needed to eat it too, so we racked up enormous/un-payable debts to pay for lots of guns and butter, sold toxic securitized AAA rated garbage to our best friends, family and business partners, squandered international goodwill through inept/arrogant foreign policy, and as of late, we’ve thrown all caution and common sense into the wind and are now vigorously trying to hyper-inflate our way out of this current deflationary banking/financial crisis.
Well it was great while it lasted, but the gig is nearly up.
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