It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
The higher-yielding and risk-sensitive Australian, Canadian and New Zealand dollars have found much support on signs of nascent economic recovery around the globe, leading traders to chuck the safe-haven US dollar over the past several months.
But their central banks, however restrained, do appear concerned with recent currency strength and may seek to hamper further declines for the US dollar.
The Bank of Israel embarked on its intervention policy back in April 2008 when it announced plans to buy $25 million daily to weaken the shekel and increase the Jewish state's foreign currency reserves. The amount was increased to $100 million per day a few months later when the shekel hit 3.20 to the dollar ($0.3125), its strongest level in more than a decade.
HKMA on late Wednesday afternoon injected HK$2.325 billion (US$298 million) into the money market to stem an appreciating Hong Kong dollar and keep it within its trading band.
BRASILIA (Dow Jones)--Brazil's real weakened in afternoon trading to end well lower Monday against a backdrop of slipping commodities prices and a stronger U.S. dollar globally.
Extending last week's downtrend, the Russian currency plunged further against the US dollar in New York deals on Monday. The ruble slipped to a new multi-day low of 31.8845 versus the greenback by about 1:55 pm ET, which may be compared to Friday's close of 31.6605.
Trading volume in Indian currency and bond markets was hit on Thursday and Friday due to a two-day strike by about 900,000 employees at state-run banks, demanding higher wages and pension. [ID:nBOM486486] Continued...
SHANGHAI (Dow Jones)--Dollar gains on international markets after Asian trading hours Friday pushed the yuan down against the U.S. unit Monday. On the over-the-counter market, the dollar ended at CNY6.8344, up from Friday's close of CNY6.8318. It traded between CNY6.8340 and CNY6.8355. The dollar-yuan central parity rate was set at 6.8346, up from 6.8316 Friday. The central parity rate has mainly been set between 6.8300 and 6.8400 since mid-December, effectively repegging the yuan to the U.S. dollar.
NEW YORK (Dow Jones- The gold market is watching the U.S. dollar as the Federal Open Market Committee meets, because any hints on interest rate hikes or announcement on the Federal Reserve's Treasury-buying program could bolster the greenback and weaken the metal's price.
Fed decisions are key for the dollar, and consequently for gold, because the metal acts as an inflation and currency hedge, meaning it is often bought in times of dollar weakness and sold in times of dollar strength. A stronger greenback also tends to pressure dollar-denominated commodities, such as gold, by making them more expensive in other currencies, damping demand.
Brazil's real slipped against the dollar to end slightly weaker Friday as profit-taking and the impact of central bank dollar buying outweighed the effects of trade inflows.
Meanwhile, the central bank stepped in to lend support to the dollar Friday with a late-morning currency market intervention, buying dollars at a rate of BRL1.8979.
The ruble had dropped sharply at the start of trading following comments from Anatoly Aksakov, a parliament deputy and member of the National Banking Council, who said in his blog that Russia needs to devalue its currency by 30 to 40% to get the economy back on track. He said doing so would help industry and provide jobs.
However, the rupee rush was stalled by heavy dollar buying by state-run banks at the INR47.40 levels, traders said.
Traders were, however, split on the source of this buying, with some suggesting the buying was central bank intervention, while others pointed towards oil companies. Traders say that the brief push forward for the rupee may have been premature.
China maintains its huge currency advantage by systematically buying dollars with yuan—increasing its hoard of U.S. Treasuries in the process – instead of letting market forces determine its value, which would be much higher than its current pegged rate.
“Failure to manage the degree of easing may lead to concerns about mid- and long-term inflation and exchange-rate stability,” the People's Bank of China said in its quarterly monetary policy report Wednesday.
All central bankers profess worries about keeping inflation in check, which is a key part of their job description. But none more so than the Chinese, who fear the widespread social unrest that would be triggered by galloping price increases.
When people can't be fed, that's when you've got a problem.”
So far, despite the flood of cheap bank loans and bubbling real estate and stock prices, inflation is not an imminent threat. China has faced falling inflation stemming from overproduction, including massive stockpiling of metals that the economy cannot absorb.
And prices of exports have declined, flooding the global market with even cheaper Chinese goods and triggering a new round of trade disputes.
But the risk of longer-term inflation both at home and abroad hangs in the air, prompting the rhetoric from the central bank.