|
You are here : Home >> Currency Street >> Report |
|
|
| |
Japanese yen on the up |
| |
|
|
| |
Japanese yen is snapping an eight-year slide against the euro and Australian dollar as the abrupt global economic slowdown forces investors to unwind long-entrenched positions, pushing these currencies into a downtrend.
The sudden shift in the outlook toward interest rate cuts in economies such as the euro zone took investors by surprise, spurring them to cut back on risky carry trades using the low-yielding yen to buy high-yielding currencies.
The move has also coincided with the dollar’s broad recovery, with the spreading weakness beyond the United States forcing some investors to abandon bets on a decoupled global economy.
Most major currencies, oil and commodities have tumbled. The Japanese currency rallied about 3 percent against the Australian and New Zealand dollars this week and 2 percent against the euro.
The sharp drop in higher-yielding currencies against the yen is likely to persist until investors fully factor in the global economy’s deterioration. Even Japan’s steady investment abroad that has kept the yen weak may not be enough to offset such selling pressure.
The abrupt shift in expectations sent the Aussie dollar sliding 9 percent against the yen in August, the biggest monthly drop in a decade.
The yen hit a two-year high against the New Zealand dollar and a five-month high against the Australian dollar on Wednesday, even as Australia and New Zealand still offer the highest interest rates among developed nations at 7 percent and 8 percent, respectively.
Australia’s rate cut was the first in seven years, while New Zealand trimmed rates in July for the first time in five years. Both countries’ central banks are expected to cut rates further.
Sterling and the euro touched five-month lows against the yen as more investors see the European Central Bank and the Bank of England lowering rates in coming months, with inflation concerns easing after oil’s 30 percent fall from its record peak in July.
Analysts say the euro, sterling, Aussie and kiwi all appear to have entered downward trends from long-term peaks and technical charts were also seen pointing to more weakness.
|
|
|
| |
|
|
|
|
| FOREX Reports |
|
| |
SA rand remains steady |
| |
South Africa’s currency, the rand was little changed from its morning levels by midday Tuesday, tracking the euro as markets looked to consolidate. |
 |
| |
Yen extends losses against majors |
| |
Japanese currency, the yen extended its early Asian session's slide against its major opponents in late trading and slumped to multi-day lows against most of them. |
|
| |
Kuwait again cuts key rates |
| |
Kuwait’s central bank, the Central Bank of Kuwait on Monday cut its one-week and one-month repurchase rates by 25 basis points each in a bid to expand money supply, a day after reducing the benchmark discount rate.
|
|
|
More> |
|
|
|
|
|
|
| Technical Calls |
|
| |
Physical gold demand, ETF holdings plunge |
| |
The Citi analysts go on to point out that: “The strength of investment demand over the last few years has been reflected in physical bullion and ETF demand although both are showing signs of dissipating. Investment in physical bullion has slowed shar |
 |
| |
Falling price keeps Gold out of limelight |
| |
The U.S. gold market, whether it be COMEX of gold Exchange Traded Funds have, to date, dominated the gold price itself. These markets place an overriding emphasis on the Technical picture. Major buyers, follow these short-term moves and players caref |
|
| |
Experts are wrong on gold: Howard Katz |
| |
This concept that the “experts” are repeatedly wrong is so common in economics that it has a special name: the theory of contrary opinion. A good example of this is the bottom in gold in 1999-2001. |
|
|
More> |
|
|
|
|
|
| |
|
| |
Mentha oil futures gained marginal momentum at the MCX counter Tuesday on short covering. Mentha oil futures have been trading under selling pressure after UP Government imposed mandi tax on mentha. |
|
| |
|
| |
Copper prices extended the previous gains on Tuesday in the domestic futures market backed by the strong global sentiments. |
|
| |
|
| |
Silver futures tumbled in the domestic market on Tuesday in line with weak global sentiments despite weak US dollar.
|
|
|
More> |
|
|
|
|
|
| 
FeedBurner
