Dollar witnesses a two-week low
The dollar witnessed a two-week low as compared to the euro as signs the international economy is improving increased demand for the high-yielding material goods. After the employment suddenly boosted in the month of September, the Australia dollar increased to a fourteen-month high.
Phil Burke who is the main dealer of the foreign-exchange, spot trading at JP Morgan Securities at Sydney said that according to the people the tough time is over and it does makes sense. But on the whole the dollar is still in a mid term downtrend. In Tokyo, the dollar decreased $1.4769 per euro at 11:49 a.m. from $1.4690 in New York. Previously, it reached $1.4773 which is the lowest since 24th September.
The euro didn’t changed at 130.17 yen, but the dollar came down from 88.60 yen to 88.21 yen. Yesterday it came down to as low as 88.01 which is the weakest in over eight months. The MSCI Pacific Index of the local shares increased 1.1 percent, and Nikkei 225 Stock Average of Japan added 0.1 percent. The gold also increased to the record high for the third consecutive day. The dollar turned down as the survey of the economists estimated the German industrial production extended 1.7 percent in the month of August following 0.8 percent downfall in the month of July.
Berlin’s Economy Ministry is all prepared to the pass the report today. In a different survey estimate, the production of the factory increased 2.1 percent in the month of August after 9.2 percent downfall in the month of July. The data will be revealed tomorrow in Tokyo. Adam Carr who is a senior economist at ICAP said that the international economy is bouncing back.
The European Central Bank will be holding their chief refinancing rate which is at a record low of one percent, and Bank of England is also keeping their chief rate very low at 0.5 percent. Both the central banks will be having a meeting today. According to the experts, the standard rate of the Federal Reserve will be increasing in the third quarter of 2010. The dollar of Australia increased 1.2 percent to the 90.23 American cents which is the maximum level since the month of August 2008 from yesterday’s 89.11 cents in New York.
According to the statistic agency in Sydney, the number of people employed increased to 40,599 from the previous month of August 2008. The unemployment rate also came down 5.6 percent from 5.7 percent. According to the Finance Ministry of Japan the country’s current-account surplus increased 10.3 percent to 1.170 trillion yen in the month of August from the previous year.
The dollar of New Zealand increased to 74.01 American cents from 73.63 yesterday. Previously it reached 74.20 cents which is the healthiest since the month of July 2008. The Finance Minister of New Zealand Bill English said that he is not at all happy with the currency’s level. The yen traded nearby the maximum level in more than eight months as compared to the dollar on the consideration of BOJ (Bank of Japan) will be faster as compared to the Federal Reserve in extracting the emergency stimulus actions.
On 3rd October, the Governor of Bank of Japan Masaaki Shirakawa said that there is a need for the programs to purchase commercial paper and other commercial bonds has relieved. William Dudley who is the President of New York Fed said that American rate of interest should remain low for quite some time just to make sure a healthy revival.
Hideki Amikura who is the deputy general manager of Nomura Trust & Banking Corp, Tokyo said that it is feasible that Bank of Japan might be faster as compared to Fred in making use of the exit policies. This could probably help in the purchase of the yen.