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In Tokyo today, the Japanese yen fell, redeploying quick losses against high-yielding currencies. The reason for this is being believed to be the rise in worldwide interest rates which have driven the Japanese traders to sell off the yen to buy more international assets.

According to the Forex analysts, the rise in the value of yen, if any, would likely be a brief one, as most of the investors generally keep using the Japanese currency like a low-priced financial source to help them in buying higher-priced exchange while they involve in carry trade.

The chief Forex strategist at JPMorgan Chase, Tokyo, Tohru Sasaki stated that although there was seen some recovery in yen for a short while yesterday, the basic scenario of the market has not changed as much as we anticipated. This can also be due to the reason that the trend of carry trade of the Japanese yen is still continuing like before.

On Friday, the dollar also rose to about 0.4 percent against the yen making its value about 121.19 yen from around 121.02 during the late New York trade on Thursday.

The euro all this while fluctuated a little from $1.3429 to $1.3424 during the late U.S. trade. The euro had earlier this week, rose to 162.68 yen from 162.45 yen.

In San Diego today, a foreign currency trade scam was busted when a Hawaiian resident, Mark Todd Hauze, was charged for deceptively using sales agents, website and some other means to illegally gather over $10 million from his investors.

The accusation claimed that Mark Hauze used to tempt prospective investors to put in their funds including retirement accounts funds in a foreign currency trading firm named “Universal Money Traders”.
UMT, located in Solana Beach was falsely represented by Hauze, and he also used to lie about the annual returns of 30 percent or more which were generated by UMT’s foreign currency trading.

He also used to falsely claim that UMT used an assured “stop-loss” system which could limit an investor’s prospective losses to 15 percent in case of every $2,000 trading position. Further misleading his customers, he used to guarantee that they would be obtaining accurate and genuine information about their account and its balances and trading results via easily available online account statements.

The prosecutors also asserted that the fake trading reports led all the UMT customers to believe that their account balances were on the rise, while Hauze had largely dissolved his clients’ funds through the trading losses and high fee charges.

Mark Todd Hauze, 48, is likely to surrender before the FBI soon this week.
He was charged in federal accusation with 11 mail frauds and 8 wire frauds on Wednesday.

In Beijing on Friday, the central bank deputy governor, Wu Xiaoling told the state media that China needed more Euros to support a bigger share of about 1.2 trillion dollars in foreign exchange reserves.

According to the China Securities Journal, Wu Xiaoling also stated that such a step has been decided upon by observing the steady growth in the European economy and the positive and stable standing of Euro in the Forex markets. 
However, speaking at an economic forum in Brussels she clarified that this move of more Euros does not mean that the central bank is planning to trim down the share of the US dollars in its Forex reserves.

But the fact that there was no mention of the kind of resources which would be getting a lesser weighting now in the Forex reserves in consequence of the Euro being given a boosted weightage, was what kept marketers and traders wondering as to what assets would suffer a decrease.

The global markets are now strongly monitoring China’s euro dominated strategy for its Forex reserves, because any decision to purchase more euro-controlled resources is likely to put a considerable growing pressure on the European currency. 

It has been supposed that China is at present being exposed to a fiscal loss due to a constant decline in the US Dollar. It is also being believed that currently about 70 percent of China’s resources are in US dollar goods which is thought to be the main reason for this probable loss exposure.  

In July 2005, China had revalued its currency Yuan by 2.1 percent. And since then it has permitted it to grow an additional five percent.
As stated in a local newspaper, Wu Xiaoling was of the opinion that regardless of increasing pressure from trading partners, China would not speed up the tempo at which the Yuan is escalating. 
 

On Thursday, Finance Minister of Brazil, Guido Mantega stated that Brazil’s improving currency, the Real, should get a further boost when Brazil reaches a popular investment-grade position. He also said that when such a status would be achieved, the administration may then have to take some added measures to curtail the growth and maintain the balance.

Guido Mantega also told the local media that the Real grew by 0.80 percent on Thursday, to the strongest point ever since November 2000.
He said that this could be possible only by the help of the hope and expectations that Latin America’s biggest economy will soon become an investment-grade nation.

He speculated that when the credit rating bureaus will rank Brazil’s investment grade, there should be a good rise in the inflow of dollars, supporting Brazil’s national currency to a further rise. 

It is believed that Brazil’s independent rating is just one nick lower than the main grade and also that Wall Street banks have estimated that Brazil may perhaps join the investment-grade guild latest by next year or even before.

To this, Guido Mantega said that only when we’ll reach that state will we then think how we will be going about it and what will we be doing.  Citing latest examples, he added that prevention measures taken up by nations like Russia, to keep their currencies from rising in excess, is not what would suitable work for Brazil too.

On Thursday, the Real went stable at 1.926 against the US dollar, gaining about 5 percent all through the month. 

 

On Thursday, at an Eastern Time of about 12:25 pm in London, a stronger Canadian GDP data further boosted the Canadian dollar. This happened after the GDP figures revealed the country’s rapidly growing financial system, with the all the highs and lows it experienced just to gain a new 30-year high to get stable at a little below 1.06 against US Dollar.

What also helped in boosting the Canadian Dollar is the market on Thursday was the surprisingly weaker US GDP data which was not much expected by the market. And helped by that, the Canadian dollar rose to a soaring 1.0660 against the US dollar.

Although, now the US dollar has sufficiently recovered from that low following a Chicago manufacturing PMI survey, which came out to be much stronger than what was expected out of it by the market.

The figures released by the Canadian GDP data show an annual growth of 3.8 percent, which was well beyond the anticipations in the market that was expecting for just a reasonable growth of around 3.4 percent.

Such a figure has turned out to be much more than what the Bank of Canada was predicting in their statement when they mentioned an approximate figure of about 3.4 percent on Tuesday. Its April Monetary Policy Report had predicted a figure of about 2.5 percent. 

Such high figures have further increased the possibility that the Central Bank would likely be raising its rate of interest in the soon, coming future.
At about 3.00 pm as per the Greenwich Mean Time, the US dollar rated at 1.0691 against the Canadian dollar.