Archive for June, 2007

US dollar loses importance in Sydney market

Wednesday, June 13th, 2007

On Tuesday, Yen and Euro were higher than the dollar of United States of America giving the early profits at the thin trading with the exchange market persisted prior to the details relating to the rise in the prices.

The dollar was priced at 121.69 yen at 2:45 pm as compared to the yen in the morning business deals of Sydney which was 121.79. The euro remained unmoved at 1.3365 USD where the old price was 1.3352.

According to Mr. Laidi the details for the price rise of the consumer on Friday for the month of May will be a deciding factor where the price for the dollar of United States will be decided for the future weeks. 

He also stated that there can be further future downfalls in the dollar of United States just in case there is a movement in the centre of the years rate for the 2.4 percent figure. And an unmoved result for 2.5 percent will be judged as impartial.

Mr. Laidi also added that the associates of European Central Bank are backing the euro that is pointing towards the procedure for constricting the rate of interest of European Central Bank which is not over yet.    

He was also of the opinion that the total amount of euro will be decreased by the traders.
This has been an issue since the previous three weeks where there are chances for the markets to witness a downfall for the rate of interest in the current year. 

According to Mr. Laidi the proof for the slow progress of United States price rise like the current week’s consumer price index would attract some new euro entries. The support is unmoved and it is at 1.3324 USD where a pause could examine 1.3293 USD.

In the meantime the experts made a note of the capability of the dollar of United States to recover the damages done by the yen and coming closer to the range of 121.84 to 122.02. It probably may increase by the future steadiness pertaining to its equities in United States of America.

Focus back to return rate as dollar stabilizes

Tuesday, June 12th, 2007

On Tuesday, the dollar was at a much better position than both the euro and the yen. The main attention was given to the United States bond rate of returns and yesterday when the Reserve Bank of New Zealand interfered, the New Zealand dollar witnessed a hike from the previous downfalls.   

Forex was keeping a close check and observing the standard rate of return of United States of the past ten years that will be re-examined for last week’s rise of 5.27 percent which will help in deciding how more the exchange would witness a hike or a rise. The rate of returns has witnessed a major leap in the previous week. It has pushed the rate of return of the past ten year which is coming closer to an all time high in the past five years. The fading anticipations for the Federal Reserve regarding the incising of the prices and all the problems related to tightening up of the universal fiscal market to face the challenges of price rise, pushed up. 

The exchange strategist Mr. Yamamoto was of the view that as the rate of return has witnessed a major hike in the previous week which has also resulted in the hike of the price of the dollar. Forex is also diverting its attention in case where it is not certain that the bonds of the United States will be fixed or not which will also permit the dollar to come at a halt from its fresh profits. 

It is not a simple task for the rate of return to come to a standard rate after witnessing a major hike. But in a situation where the future details are stronger, the rate of return will be forced to come under the increasing pressure and at the same time the dollar will also be maintained.

The interference from the central bank of New Zealand last week was done to trade their exchange as the New Zealand dollar witnessed a twenty-two year high as compared to the USD which was not of much help to carry on the business. The investors have put into use the low rate of return exchange for example the yen which will assist in increasing the resources for the high rate of return.

The position of the euro on Friday remained stable around $1.3358, as on Friday, when it came close to a two month low which was around $1.3324 as the rate of return of the ten year rushed to compete against the Fed’s aim with a rate of 5.28 percent. The dollar was not affected and stayed at around 121.74 yen. 

The euro witnessed a downfall of 0.7 percent as compared to the yen which was at 162.49 yen. The trade done by Reserve Bank of New Zealand on Friday assisted the dollar of New Zealand to a minimal of US$0.7469 from US$0.7640. The selling of the New Zealand witnessed a hike of 0.10 percent at US$0.7520.

On Friday, the dollar of New Zealand witnessed a hike of 0.06 percent at 91.48 yen which was lower than the seventeen year high.

Dollar witnesses a slight hike against the dong

Monday, June 11th, 2007

The Vietnamese dong witnessed one of the biggest depreciations against the USD last month. It is done to assist the trading of VND which was identical to the rate of exchange as per previous year’s end. 

For the past two weeks the rate of exchange of VND is steady as compared to the other currencies. The local currency did a business of about VND 132 per yen and VND 21656 per euro.

The rate of interest for the last week remained steady. And the banks also did not alter the bank rates and persisted with the 3.5 to 3.7 percent annually. The rates did not get altered which shows that the banking structure is functioning smoothly. The banks took out VND 200 billion from the various auctions on a weekly basis and VND 15.7 trillion through the open market functions. 

From June 1 there will be a hike in various stages of essential bank accounts that the banks had to maintain with the State Bank of Vietnam in overseas exchange. The time period and percentage rates will also be altered. The necessity of the bank accounts to make extensive deposits will also get changed by two times, with the time period of twelve months the deposit percentage will be five to ten percent, and for the time period of twelve to twenty four months the deposit percentage will be two to four percent.

The necessity for the bank accounts and the overseas exchange will be hiked with a time period of twelve months with a deposit percentage of eight to ten and the time period of twelve to thirty-four months with the deposit percentage of two to four.

These alterations are made with a motive to restricting price rises. The API (Annual Price Index) for the month of April increased from 7.18 percent to 7.34 percent. These two annual price index have exceeded the aim to maintain the inflation rate under seven percent yearly.

The dollar more powerful at the quiet stocks and tie-ups

Monday, June 11th, 2007

Making a comeback after the losses witnessed last week, the cost value for the United States of America shares pulled through the various sell-off which was due to bouncing back at the treasury marketplace.

The Forex markets across the world and United States of America normalized as the investors with the worry of hike in the rates left the bonds and the stocks last week. The experts are of the view that the markets will be charged up with the sales of the yen that will result in the maintaining the dollar.

A strategist from Forex Mr. Tanase was of the view that seeing the present condition of the dollar, the trade of the dollar will not be the same like last week. The price of the euro slashed downwards to 0.17% to $1.3354. On Friday, at the time of closing, it was $1.3324 which was witnessed as the lowest of the month.

The dollar stabilized at a rate of 121.65 yen. The dollar witnessed a rise of about 121.87 yen on Friday. Following a sudden displacement it increased to 5.27% within the ten year history of the treasury rate of returns. It was recorded as the highest within the time period of eleven months which is equal to the official financial rate of the Federal Reserve.

On Friday, it certainly helped the dollar which was a down to 120.77 yen from a time period of three weeks. It also helped in putting the exchange on track at the maximum level since the month of December for the year 2002 i.e.122.24 yen. 

The currency of Europe witnessed a downfall from 0.17 to 162.54 yen whereas the yen increased largely against the currencies that have high rate of returns after last week’s major losses.

According to the experts, the yen should be maintained as majority of the investors are backing up their business where the exchange of Japan is put into use for the purchase of the foreign property which provide large rate of returns It was different from the previous one where the calmer marketplace probably held up need for more future plans.

New Zealand dollar hits 22-year high

Monday, June 11th, 2007

On June 8, the New Zealand dollar surpassed seventy six United States cents. It happened for the first time in twenty five years where the investors were largely interested in the cash rate of eight percent. The borrowing cost has been revised thrice to make less it intense for the requirements of the consumers and a lot of importance was given to the matters relating to the housing. In the current year, the kiwi currency has maintained a hike of eight percent and surpassed Canada’s dollar.

Mr. Sinton who is a dealer with ANZ National Bank Limited at Auckland was of the view that it is a topic of argument about the rate of return. Many of them are of the view of having a hard talk due to the rise in the rates from the previous week, keeping in view that the financial situation is not looking good.

It was around 10:10 in the morning in Wellington when the New Zealand dollar purchased 76.14 cents. A few days back it was around 76.45 cents which was the highest form the time when free trade was made official in the month of March, 1985. The last figure of the New Zealand dollar that was recorded surpassed 76.42 cents in the month of May 26, 1982 when it was managed by the central bank. In the year of 1973, it was a maximum of $1.52.

Mr. Allan who is the Governor of Reserve Bank hiked the rate of interest on June 7. He was of the opinion that the economy is due to demonstrate major signs for making slow progress. He also increased the standard rates in the month of March and April.

The Credit Suisse index gave a verdict in a meeting in the month of July, according to which, the immediate trade of the swaps that there is a thirty seven percent possibility of hiking the prices again.

Some of the New Zealand companies may have to move out their business to some other place seeing the hike in the currency. On June 8, a company which is engaged in making airtight containers had to cut back thirty jobs, after removing seventy jobs from Christchurch in the previous month. Their business has moved out to China now.

On June 8, according to one of New Zealand’s largest retailer company, the net earnings reduced to a maximum of seven percent during the current year because of the exchange’s profits within that time phase.

In the previous year, New Zealand dollar’s profits has risen to twenty nine percent against the yen. The investors could easily borrow yen for the investment in high rate of return resources at any other place. Among the main financial systems, Japan’s 0.7 percent rate of target is the lowest.

As for March 31, the overseas banks transferred $180 billion to the foreign countries via their branches in Japan. According to Bank of Japan, there was a hike of thirty one percent as compared to the previous year. 

Asian Markets Trading in a Positive Territory

Monday, June 11th, 2007

The key Asian markets seem to have taken a cue from the US markets and then open for trading on Monday morning, to trade in the positive territory.
The US markets closed in the upbeat territory at the end of last week, around Friday evening after going through losses for three days in a row before Friday the previous week.    

Markets in Japan seem to be trading in positive territory. In Tokyo, the Cabinet Office released the economic data connected to the GDP which showed that the Japanese financial system and market had grown at the rate of 3.3% annually during the first quarter of 2007.
This data also revealed that the customer expenditure during this period also went higher by 3.1%.  

Also, while the Australian and Philippines trading markets are closed for public holiday, the South Korean market is trading in the downbeat territory. 

The markets in Singapore, New Zealand and Taiwan are also trading in an upbeat and positive territory. The China trading market is dealing in the positive territory too presently, with a growth of over 1.5%.
On the other hand, the Hong Kong trading market is also up by over 0.5%. 

What is said to be the reason for all these gains in the market is the banking stocks such as those of Mizuho Financial. With the Japanese currency started to weaken against the US Dollar, the exporters and other traders also joined in the convention.
A not so strong Yen would make the Japanese export goods economical and affordable in the worldwide market while simultaneously growing the sales awareness from export sales in terms of Yen.  

In Singapore, US dollar eases against Yen

Monday, June 11th, 2007

During the late afternoon trading in Singapore today, the US dollar continued to ease against the Japanese Yen. The main reason behind this transition is speculated to be the significant US economic data which would be made public this week, before which, the traders have started slowing down their extended US Dollar positions.

At 0730 GMT here in Singapore, the US Dollar stood at 121.56 yen, a little down from 121.65 yen in Tokyo about 4 hours back. The euro stood at 1.3345 USD here, which was again down from 1.3347 USD in Tokyo trading a few hours ago.

The US data which is due to be released this week comprises of all the retail sales figures for the trading month of May, the most recent beige book details and the “trade in” prices and figures for May on Wednesday of this month.

Also, the producer price index for the month of May is due to be out on Thursday and the consumer price index for the past month should be made public by Friday.
The US Dollar was assisted past week by lasting suspicion that the Federal Reserve may decide on to raising the interest rates finally for the reason that recently there were rises in goods and services prices.

According to a note issued by the United Overseas Bank to its clients, the US economic data due this present week should be a more leading advisor. 

Japanese GDP data reflects steady growth, little change in Yen

Monday, June 11th, 2007

The Japanese Yen showed a little change today in US Markets after the GDP data of Japan showed its gross domestic product growing more rapidly than was expected by its government initially during the first quarter.

Yet, the Japanese government supported the assumptions that the interest rates will be rising in the next few months.
From late New York trading on Friday last week, the Japanese Yen gained a little from 121.73 to 121.72 against the dollar in Tokyo trading early morning. The Yen stood at 162.56 against the Euro, from 162.80 by the end of previous week.

It is being speculated that an increase in the interest rates can push the traders to trim down on the buying of higher-yielding goods financed by a borrowed Yen, which in other words can also be known as a carry trade.

It has been believed that Japan’s standard interest rate of 0.5 percent, which is known to be the lowest interest rate in the entire trading and business world, was the main reason which led to a low down in the Yen value against mostly all the high yielding currencies in the previous year.

A bond and currency dealer at Okasan Securities Co., Tokyo, Tsutomu Soma stated that there were prospects for an increase in the interest rates around August or September this year.
Although, he also said that this rate increase would not be able to support the Japanese currency much as rates were on the rise in other countries as well, therefore it would not be easy to reduce the Yen’s rate gap.  

 

Forex review

Friday, June 8th, 2007

It was on Thursday that the United States dollar got weak against the Euro in particular. It proved beneficial for the investors as a major economic increase was anticipated and increased the federal debt by 5 percent. Crude oil also registered an increase from US$0.72 to US$66.73 per barrel. It is for the third time in a row that various doubts have gripped the worldwide stock market where the investors were forced to convert their foreign equity assets which resulted in strengthening the U.S. Dollar Trading. Looking further into this, some more data is again expected to be out on Thursday. A meeting session between China and United States on Thursday where the main topic was Trade deficit and the markets, awaits the release of a verdict on Friday.

The Euro witnessed a downfall with the U.S. Dollar Trading against the tough dollar on Thursday. In general EURUSD range of the trade was a low 1.3427 and a maximum of 1.3517. As for the New York session it closed at 1.3436. Looking further some added information is anticipated from the EZ towards the end of the week.

The Japanese Yen gained against the dollar with the fall in the United States stock and slowing of the equity which forced most of the investors to unwind where the main currency of the trade was Japanese Yen.  In general the USDJPY range of trade was a low 120.780 and a high 121.59. These figures were before the day closing of the New York Session at 121.13. Looking further the important information through Machine orders are pending. Most probably the anticipated figure would be 4.7 percent which formerly was -4.7 percent. The percentage for the machine orders is 2.4 percent.

The bank of England has chosen to stop their rates at 5.7 percent with the Sterling falling against the U.S. Dollar Trading. Generally the GBPUSD range of trade was a low 1.9750 and a maximum of 1.9945 before the New York session closed at 1.9774. In future the details from Britain was in the shape of Industrial Protection which is expected at 0.4 percent which was earlier 0.6 percent and manufacturing production was anticipated at 0.4 percent which was earlier 0.8 percent. These figures are for the month of April.

There was a decrease in the Australian unemployment which resulted in the Australian dollar rise in the Asian session. The unemployment ratio of May got a positive response for its 4.6 percent which was predicted at 4.4 percent. It gave a sign for the economy to match up to the previous release of Gross Domestic Product. In general the AUDUSD did a business of a low 0.8407 and a maximum of 0.8479 before it got closed at 0.8424 in the New York session. The RBNZ announced 8 percent (25 point hike) which is the maximum of the G10 countries. Accordingly the New Zealand dollars increased to the maximum point i.e. to 0.7577 from the time it started in the year of 1985.

Gold rose in response to the weaker Dollar by US$665.24.

Yen Witnesses a fall, Dollar becomes popular

Friday, June 8th, 2007

Today morning saw a major fall with Yen in Asia. This news took a major turn after the orders for Japan’s machinery became a major worry as the majority of the business money may be loosing importance in the coming months.

Simultaneously the dollar became popular against euro as the government of United States provided more and more interest bonds opportunities for the foreign investors.

Central machine orders of Japan are of a very progressive stature. It is the main body for monetary expenditure which in the month of April witnessed an increase of 2.4 percent as compared to the last month. This was made available by the government data that was shown on Friday. It was under the estimation for a 4.7 percent rise.

The experts are of the view that the Bank of Japan has made some money related rules and strategies that will affect machinery details. A strategist at Nikko Citigroup Mr. Yamamoto is of the opinion that the fall of the yen is the result of selling of yen by the individual shareholders.

The Japanese individual shareholders were not happy with the small rate of interest. This is the reason that they are snapping the economic resources to other countries. This is also one of the reason that Yen is sliding downwards as compared to other currencies for example- sterling, New Zealand and Australian dollars.

Forex dealers are also vigilant about the various equity markets and it is the worldwide sales that have forced the traders of United States to sell some part of the abroad equity investment that as a result is providing profit to the dollar.

The preceding day the yen got a hike because of the shares of the European and United States slashed the demand for the deals which incorporates high amount of danger for example- yen carry trade. The traders borrow yen with low interest to make a purchase for the abroad items where the traders can get high profits.

The rate of the dollar witnessed an increase of 0.27 percent against the yen which was 121.34 as compared to the yen that was 121.04 which was recorded on the New York business on Thursday. In United States of America the business of the euro dropped from $1.3437 to $1.3430.

The euro increased to 162.70 yen nearing 162.64 yen. The ten year history of the assets increased significantly by five percent which was the maximum since the month of July in the year 2006.