News – Page 1101

October 3
2008

Australian Dollar Has Worst Week Since 1985

The Australian dollar posted the biggest weekly loss since 1985 against the U.S. dollar this week, as the traders dumped their positions in the high interest rate currencies, while the situation with the global financial system remained uncertain. The reduction of the carry trade positions (trade technique that is based on gaining positive interest rate difference through the holding of a long position […]

October 2
2008

Rating Downgrades Drop Icelandic Krona

The Icelandic krona declined to the lowest level in almost seven years against the U.S. dollar yesterday after the rating downgrades by S&P and Fitch rating agencies raised the risk-averting mood among the investors. The drop in this national currency reached more than 17 percent this week after the central bank pledged to nationalize the century-old Glitnir Bank as it failed to pay by its short-term […]

October 1
2008

Taiwan Dollar Rose on Bail-Out Expectations

The Taiwanese dollar gained today after four days of declining against the U.S. dollar as the speculations that the U.S. senate will approve the $700 billion bail-out plan by the end of this week spurred confidence in the Asian currencies. The Taiwans currency rose from the 8-month bottom versus its American counterpart with the whole third quarter of 2008 being the worst for TWD […]

September 30
2008

Malaysian Ringgit Opens Lower for 6th Day

The Malaysian ringgit like the other emerging Asian currencies continued to fall today as the U. S. Congress failed to pass the $700 rescue plan for the financial institutions and the global volatility rose on the deeper crisis expectations. The Malaysian currency is currently heading for the second month of decline versus the U.S. dollar as the Asian stock markets follow the general trend of the […]

September 29
2008

Dollar Gains on Rescue Plan Agreement

The U.S. dollar rose today against the euro and the pound after the U. S. President and Congress leaders reached the agreement on the $700 billion plan to buy out lossy assets from the financial companies. Dollar accelerated its growth after Harry Reid, the Senate Majority Leader, said that the plan will be considered and the Senate will vote on it before October […]

September 26
2008

Euro May Fall against Dollar on Paulson’s Plan

The bet on the euro short positions may increase in the following months as the Paulsons rescue plan may pull out the U.S. financial system from the crisis, while the Eurozones economy will be in recession. According to UBS investment bank, traders should sell euro against dollar as the Europes economy weakens. Germanys business confidence is currently showing the lowest level in the last 3 years. U.S. government will […]

September 25
2008

USD Fell as Rescue Plan May Include Rate Cut

The U.S. dollar dropped against three other major currencies for the first time in three days today after George W. Bush said that U.S. may enter a long and painful recession period if the necessary measures arent taken soon. Current macroeconomic indicators in combination with the Bushs speech suggest that the $700 billion rescue plan for the financial system may also include interest […]

September 24
2008

Korean Won and Other Asian Currencies Fall

The Asian currencies declined today against the U.S. dollar as the delay of the U.S. financial rescue plan may diminish the attractiveness of the risk-ridden regional currencies in conjunction with the economic output decline in Asia. The basket of the 10 major Asian currencies fell today after the yesterdays testimony of the Federal Reserve Chairman Ben Bernanke and the U.S. Treasury Secretary Henry Paulson before the Congress regarding the $700 billion plan. The Congress reaction to this plan isnt obvious and the debates about it may […]

September 23
2008

Yuan Reaches Post-Peg Peak Against Dollar

The Chinese yuan rose today to its new highest level against the dollar as the Forex traders reacted on the U.S. bank-rescue plan of dumping $700 billion into the economy that will hurt some important macroeconomic statistics and increase the supply of dollars. Yesterday dollar showed an exceptionally fast drop against the major currencies on the Forex market. In its reaction to this fall, Peoples Bank […]

September 22
2008

$1 Trln. Bail-Out Plan May Cost Dollar Its Gain

Henry Paulsons plan to rescue the financial institutions tied with the illiquid mortgage assets will not only cost U.S. $1 trillion of tax-payers money, but it may also end the dollars rally that was rocking the Forex market since mid July. The plan will require about $700 billion to buy out the troubled assets from the banks and other financial institutions and also […]