MisterFund dot com

Written by Terri Belkas, Currency Analyst

Normally, the release of US Non-farm Payrolls takes center stage in the forex markets, as the figure tends to spark significant volatility and can shape interest rate expectations for the Federal Reserve. However, Wednesday’s FOMC rate decision may steal the limelight, as futures are currently pricing in an 82% chance of a 25bp cut to 2.00% and an 18% chance that the Fed will leave rates unchanged.

Read more

Image credit to google
KUALA LUMPUR, (Bernama) — The ringgit is expected to record new 10-year high against the U.S. dollar next week on the greenback’s weakness following market participants’ persistent fear over the fate of the U.S. economy, dealers said. Read more

Image credit to Google

Forex reserves rose USD 2,724 million to touch USD 311,885 million as on Apr. 11, 2008, mainly due to the increase in foreign currency and assets collections, on a weekly basis.

As per the weekly statistical supplement of the Reserve Bank of India (RBI) released on Apr. 11, 2008, foreign currency and assets moved up USD 2,247 million to USD 301,394 million.

During the same period, the reserve position in the International Monetary Fund (IMF) reduced by USD 3 million to USD 434 million. While, gold reserves increased by USD 481 million to USD 10,039 million.

Foreign currency assets expressed in USD include the effect of appreciation or depreciation on non-US currencies (such as Euro, Sterling and Yen) held in reserves.

By IRIS

Image credit to Yahoo
BEIJING, (Xinhua) — China should adopt a stable foreign exchange rate policy to avert the possible economic fall-out of continued yuan appreciation, policy advisers said on Thursday, as the currency broke through the 7 mark against the U.S. dollar. Read more

The dollar fell on Friday after a report showed the U.S. economy shed jobs for a third straight month, confirming fears that the country may already be in a recession.

Both the euro and yen posted gains on the greenback after the government said U.S. employers cut 80,000 jobs in March, more than expected and the biggest monthly fall in five years. Read more

The US dollar was trading mixed against major currencies on Wednesday morning in Sydney,
following overnight losses after the release of soggy economic data.

The US Conference Board said its consumer confidence index fell to 64.5 in March from 76.4 in February — the lowest reading since March 2003 and well below the 73.5 reading the market had expected.

Meanwhile, the Standard & Poor’s (NYSE:MHP) /Case-Shiller home price index indicated that US home prices fell 11.4 percent in January, the steepest drop since data was first collected in 1987.

At 10.15 am (2315 GMT) the dollar was at 100.13 yen from 100.52 in late trading in New York while the euro was at 1.5611 dollars from 1.5651 dollars.

Overnight, the dollar weakened against the euro after European Central Bank vice-president Lucas Papademos said euro zone inflation developments are ‘unsatisfactory’, adding that the ECB governing council is committed to ensuring that the objective of price stability is achieved in the medium term.

John Noonan at Thomson IFR said Papademos’ statements were not helpful to the dollar which had made some gains on Monday on better US economic data.

Noonan said in a fairly quiet session the dollar bounced to a high of 100.67 yen in Europe before dropping to 99.64 as softer data was released in the US.

He said high-yielding currencies such as the Australian dollar also slipped on risk-aversion selling after the weak US data but improved as Wall Street recovered from its lows for the session.

The Australian dollar dipped to 91.05 US cents but then recovered to trade in a range of 91.70
to 91.75 cents.

Noonan said the mostly positive sentiment on equity markets overnight despite the poor US
economic data should extend into the Asian session.

‘Overall, it looks like an Asian session of range trading, with a US dollar negative bias,’ he said.

Sydney 10.10 am (2310 GMT)
US dollar
yen 100.13
sfr 1.0082
Euro
usd 1.5611
stg 0.7796
yen 156.24
sfr 1.5752
Sterling
usd 2.0029
yen 200.38
sfr 2.0210
Australian dollar
usd 0.9163
stg 0.4575
yen 91.655
New Zealand dollar
0.8052
bruce.hextall@thomson.com
Copyright Thomson Financial News Limited 2008. All rights reserved.

The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.

Source: CNN Money

TOKYO (Thomson Financial) - The US dollar was firmer against other major currencies in Asian morning trading Monday, continuing its rebound late last week, but was held within narrow ranges, with Asian players unwilling to move the market because of a lack of fresh trading leads and in the absence of players from further afield because of public holidays. Read more

Monday, 24 March 2008

KUALA LUMPUR, March 24 (Bernama) — The ringgit was lower against the U.S dollar in early trade today as the fall in crude palm oil prices weighed down on the local currency, dealers said. Investors were also cautious over rising concerns with prospects of a global credit market turmoil as the U.S. economy looks headed for an impending slowdown due to deepening housing woes.

The ringgit was lower at 9.10 am against the greenback at 3.1930/1960 from 3.1800/1830.

Against Asian currencies, the ringgit weakened, opening lower against the Singapore dollar at 2.2981/3011 from last Friday’s closing of 2.2926/2967 and easier against the yen at 3.1962/2008 from 3.1899/1945.

As for the European currencies, the ringgit was easier, declining against the euro at 4.9175/9228 from 4.9162/9252 and lower against the British pound at 6.3167/3242 from 6.3098/3170.