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ECONOMIC CRISIS CHANGES TONE OF RACE IN SIXTH DISTRICT
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Home | Politically Connected | National Politics | U.S. House
Economic crisis changes tone of race in Sixth District
Marlin Levison, Star Tribune
From left, Bob Anderson, Michele Bachmann and Elwyn Tinklenberg held an election debate on Oct. 1 at Stillwater City Hall.
Wall Street's meltdown and the government's bailout have become key in the three-way battle for the House.
By PAT DOYLE, Star Tribune
Last update: October 8, 2008 - 11:01 PM
Featured comment
Close comment
Bachmann has to go...
This is an easy one. If you think the direction our country is heading is the wrong direction, you need to vote for a change. Bachmann … read more has been a whacky pawn for the far right political agenda...and this is an agenda that has not worked. Our economy is in the tank, our status in the world is on the decline, and that's just the start. Moreover, Bachmann is so obsessed with pet social issues like legislating a definition of marriage that she hasn't gained any meaningful status in Congress. We deserve AND we need much, much better...party allegiance alone cannot justify a vote for Bachmann.
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Abortion, taxes and transportation have dominated recent campaigns for Congress in the suburbs, small towns and farms north of the Twin Cities.
But the political landscape changed in Minnesota's Sixth District when the financial crisis hit Wall Street and Washington. More than any other congressional race in the state, the showdown in the Sixth is offering voters stark choices on whom to blame for the crisis and what to do about it.
Rep. Michele Bachmann, a Republican, is telling voters that "hyper-regulation" by the federal government created a chain of events that caused bank failures and credit freezes. Bachmann voted against the massive rescue package that cleared Congress last week, slamming it as unfair to taxpayers.
Her Democratic challenger, Elwyn Tinklenberg, tells voters that lack of government regulation encouraged bankers to make reckless bets that brought on the crisis. He favored the bailout as a way to avert a more serious slowdown in middle America.
As the financial squeeze makes itself felt on Main Street, the candidates' contrasting positions on the bailout could determine the outcome of the race.
"People are very responsive to what the headlines are about," said Steven Smith, a professor of political science and expert on Congress at Washington University in St. Louis.
NOTE: STEVEN SMITH IS A WELL RESPECTED PERSONALITY IN WASHINGTON UNIVERSITY IN ST.LOUIS.
The Sixth sprawls across Washington, Anoka, Wright, Benton, Sherburne and Stearns counties. It has been reliably Republican in recent years but is expected to be competitive for Democrats in a year when Republicans around the nation are struggling.
Bachmann, who won the seat in 2006, had a voting record more conservative on economic, social and foreign policy issues than 89 percent of her colleagues last year, according to the National Journal's ideological scorecard of congressional members. She gets more money from abortion-opposition and gun-rights groups than all but nine other members of the House.
Democrats argue that Bachmann is too conservative even for this conservative district. That line didn't work in 2006 for Democrat Patty Wetterling, a child-welfare advocate whom Republicans labeled too liberal.
But Tinklenberg calls himself a moderate Democrat and touts endorsements from police and fire groups and good grades from the National Rifle Association, which nonetheless endorsed Bachmann. He considers himself a Blue Dog Democrat, a group of fiscally conservative Democrats in Congress that has endorsed him.
Another candidate, Bob Anderson of the Independence Party, entered the race to bring mental health insurance on par with other health coverage. Because the rescue bill includes such a provision, he is now focusing on prohibiting insurance companies from denying coverage for applicants with pre-existing conditions. He also stands apart from the others by his refusal to accept campaign contributions and his attack on Congress as a tool of special interests.
Still, the Independence Party endorsed Tinklenberg in the district, which voted heavily for Jesse Ventura when he ran under the party's banner for governor in 1998. Tinklenberg reminds people that he promoted the Hiawatha light-rail line and the future North Star commuter line while he was Ventura's transportation commissioner.
Transportation and oil
Transportation issues still loom large in the district, where traffic snarls and long commutes are common.
"If I had something to do downtown, I'd take the line," Patti Trott said of the North Star rail line after talking with Tinklenberg in a restaurant in Elk River, which will have a commuter station. But her husband, Karl, wanted more money spent on roads, explaining, "our priorities are out of whack."
While Bachmann has denounced the use of federal earmarks for funding local projects, Elk River city administrator Lori Johnson told her during a recent visit that the city needs all the help it can get to fix roads to ease congestion.
"We don't want to be left behind if there are earmarks, and that's the way the game is played," Johnson said.
As gasoline prices spiked this summer, both Bachmann and Tinklenberg advocated more off-shore drilling and alternative sources of energy. But they differ sharply on emphasis.
Bachmann stresses lifting federal restrictions on oil drilling. "We sit on the answer to our own problem," she said at a recent debate. "We have more oil in the United States than all of Saudi Arabia, and that's just in Colorado, Utah and Wyoming in the form of shale oil."
Tinklenberg replied, "We need to be exploring more domestically ... but we also need to move aggressively in both the areas of conservation and the areas of alternatives."
He favors increasing automobile fuel efficiency standards, while Bachmann voted last year against a measure that raised them.
NOTE: BACHMANN WON THE SEAT HOUSE LAST 2006.
On another key issue, health care, Bachmann wants to make insurance premiums and other medical expenses tax-deductible for individuals to make it easier for consumers to buy health insurance. Tinklenberg favors offering the option of government-sponsored health insurance as a competitively priced alternative to private insurance plans to achieve universal health coverage.
During her freshman term, Bachmann sometimes made news with remarks that raised eyebrows.
This summer she said expanded oil drilling and other measures would bring "immediate and lasting relief" and cut gas prices to $2 a gallon. The U.S. Energy Information Administration said it's unlikely those steps would significantly reduce gas prices any time soon.
Shortly after taking office in 2007, Bachmann told the St. Cloud Times that Iran planned to partition Iraq and turn part of it into a terrorist training ground. Her office later said her remarks were "misconstrued."
"The only reason this district would ever be in play is Michele Bachmann herself," said David Wasserman, the editor in charge of assessing House races for the nonpartisan Cook Political Report in Washington. "She's a lightning rod in Minnesota politics. To the extent that Elwyn Tinklenberg is competitive, he's attracting some moderate Republican votes that's necessary to win this district."
Through mid-August Bachmann had $1.4 million in campaign contributions on hand. Tinklenberg had $200,000. Wetterling had four times as much cash at this point in her losing 2006 race.
Unless the party, union allies or others pump money into the race in the final weeks, Tinklenberg won't be able to afford many, if any, TV ads to counter a likely Bachmann ad blitz. She also has frequently appeared on "Larry King Live" to discuss national issues such as drilling or the financial rescue package.
About the bailout
Bachmann says the $700 billion bailout was unnecessary. She blames federal regulations for making it easier for people to obtain loans they couldn't repay, and she says the crisis could be overcome in part by changing accounting rules.
Tinklenberg labels her remedy "pretend accounting" and defends the package as needed to prevent credit from drying up in communities throughout the nation. He said significant oversight and curbs on executive compensation made the final package more palatable than its earlier version.
In talking with voters, he has been pointing out that Bachmann sits on the House Financial Services Committee that oversees the financial industry. She received more contributions from finance, insurance and real estate interests than any Congress member from Minnesota.
Wasserman said Bachmann needed "to be careful to ... avoid being seen as too corporate."
Smith said Bachmann's no vote on the bailout can be easily justified to constituents.
"The conservatives don't like big government and the liberals don't like bailing out fat cats," he said. "People in the middle just don't like the idea of giving away money."
But Tinklenberg can use his support of the package to define himself.
"There are signs that working-class individuals are finding their credit options disappearing," Smith said. "He's trying to show that he's a middle of the road politician who takes a pragmatic view of the problems facing the country."
Pat Doyle • 651-222-1210
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BUCKLAW - WE MEET AGAIN YOU POLITICAL HACK
So you haven't woke up yet? As I was writing my last rant - I noticed an ad running on the right side of the web page for an upcoming movie - something called "Mikey and Mylie make a porno movie" You see BUCKLAW we're all in this giant pot of water and you and I are frogs. (Can you picture that - are you with me?) and you know what happens next? Yes - the heat has been turned on under the pot and I have already jumped out of that pot. You BUCKLAW have decided to stay in the pot and continue towards your union with Winston Smith. I ask you: which flavor of Koolaid do you prefer to drink when your party boss passes the party favors? Lemon Lime perhaps? Grape? or maybe my favorite: Pickle Chocolate cherry.
posted by paulsworkshop on Oct 8, 08 at 10:44 pm |
0 of 6 people liked this comment.
Good God
Why are Republicans like paulsworkshop so rabid? Talk about fanatical. Blown up any abortion clinics lately? Paul go back to the workshop and close the door and stay there please. You're an embarassment even to the right. You seem fond of koolaid and pin the tail on the donkey, perhaps you just need some tail. Sleep tight knowing the Democrats will be in complete control of the House of Representatives, the Senate and we'll have a Democrat President. Good times are a coming and Palin will be back in Alaska "shootin" moose in a matter of weeks. Night night!
posted by Mplsuptown1 on Oct 8, 08 at 10:58 pm |
3 of 3 people liked this comment.
Michele Bachmann
I really cannot believe that anyone will vote for Mrs. Bachmann. While I have no doubt that she is a nice woman, she is an embarassment in the house. Her legislation (freedom to choose lightbulbs?), her behavior(the President is not a rockstar) and her take on the economy (too much regulation?) all add up to Mrs. Bachmann being a horrible representative. Unfortunately, my district is a yellow dog republican district and it is too late to get a yellow dog on the ballot......... Please vote for Tinklenburg!!
posted by kpersson8 on Oct 8, 08 at 11:00 pm |
8 of 9 people liked this comment.
You jumped from the pot and into the fire before you could make your point, Paul...
And that is the problem with the conservative side of political debate this election. Please tell us WHY we should put up with another four years of mismanagement and policies that have lead this country on a decline. What is it about an opportunity for correcting our direction as a country that has the right so angry? All people need to do is be semi-conscious and they'll see that things are not going well for Americans today. Can anybody disagree with that? Would you keep promoting the same ideas and strategies that have lead to where we are today if we wanted to change it for something better tomorrow?
posted by Bucklaw on Oct 8, 08 at 11:20 pm |
4 of 4 people liked this comment.
Most absurd comment of the night
Michelle Bachmann should be our next president? Oh my, oh my, oh my. That is a scary thought. Right up there with the terror of Sarah Palin possibly stepping into that spot. @@ I'm not sure what Svengali-like attraction this nutcase holds for her followers, but for the rest of us she is a true humiliation. Bachmann does have a national reputation. I have friends all over the country who look up her comments online just for laughs, sort of like they'd read a comic book. To paraphrase an ad regarding another Republican that I hear people quote everywhere I go these days, Michelle's gotta go.
posted by smccl001 on Oct 8, 08 at 11:38 pm |
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Campaign finance information through Aug 20, 2008
District 1 Total raised
Brian Davis, R
$614,193
Gregory Mikkelson, I
$0
Timothy Walz, D*
$2,047,132
$2,661,325
District 2 Total raised
John Kline, R*
$1,086,518
Stephen Sarvi, D
$261,861
$1,348,379
District 3 Total raised
David Dillon, I
$47,663
Ashwin Madia, D
$1,053,490
Erik Paulsen, R
$1,396,652
$2,497,805
District 4 Total raised
Edward Matthews, R
$32,100
Betty McCollum, D*
$487,304
$519,404
District 5 Total raised
Keith Ellison, D*
$952,026
Gregg Iverson, I
$0
Barbara White, R
$32,394
$984,420
District 6 Total raised
Bob Anderson, I
$0
Michele Bachmann, R*
$1,925,499
Elwin Tinklenberg, D
$533,260
$2,458,759
District 7 Total raised
Glen Menze, R
$2,621
Collin Peterson, D*
$829,221
$831,842
District 8 Total raised
Michael Cummins, R
$0
James Oberstar, D*
$1,635,075
$1,635,075
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Home | Politically Connected | National Politics | U.S. House
Economic crisis changes tone of race in Sixth District
Marlin Levison, Star Tribune
From left, Bob Anderson, Michele Bachmann and Elwyn Tinklenberg held an election debate on Oct. 1 at Stillwater City Hall.
Wall Street's meltdown and the government's bailout have become key in the three-way battle for the House.
By PAT DOYLE, Star Tribune
Last update: October 8, 2008 - 11:01 PM
Featured comment
Close comment
Bachmann has to go...
This is an easy one. If you think the direction our country is heading is the wrong direction, you need to vote for a change. Bachmann … read more has been a whacky pawn for the far right political agenda...and this is an agenda that has not worked. Our economy is in the tank, our status in the world is on the decline, and that's just the start. Moreover, Bachmann is so obsessed with pet social issues like legislating a definition of marriage that she hasn't gained any meaningful status in Congress. We deserve AND we need much, much better...party allegiance alone cannot justify a vote for Bachmann.
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More from U.S. House
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Abortion, taxes and transportation have dominated recent campaigns for Congress in the suburbs, small towns and farms north of the Twin Cities.
But the political landscape changed in Minnesota's Sixth District when the financial crisis hit Wall Street and Washington. More than any other congressional race in the state, the showdown in the Sixth is offering voters stark choices on whom to blame for the crisis and what to do about it.
Rep. Michele Bachmann, a Republican, is telling voters that "hyper-regulation" by the federal government created a chain of events that caused bank failures and credit freezes. Bachmann voted against the massive rescue package that cleared Congress last week, slamming it as unfair to taxpayers.
Her Democratic challenger, Elwyn Tinklenberg, tells voters that lack of government regulation encouraged bankers to make reckless bets that brought on the crisis. He favored the bailout as a way to avert a more serious slowdown in middle America.
As the financial squeeze makes itself felt on Main Street, the candidates' contrasting positions on the bailout could determine the outcome of the race.
"People are very responsive to what the headlines are about," said Steven Smith, a professor of political science and expert on Congress at Washington University in St. Louis.
NOTE: STEVEN SMITH IS A WELL RESPECTED PERSONALITY IN WASHINGTON UNIVERSITY IN ST.LOUIS.
The Sixth sprawls across Washington, Anoka, Wright, Benton, Sherburne and Stearns counties. It has been reliably Republican in recent years but is expected to be competitive for Democrats in a year when Republicans around the nation are struggling.
Bachmann, who won the seat in 2006, had a voting record more conservative on economic, social and foreign policy issues than 89 percent of her colleagues last year, according to the National Journal's ideological scorecard of congressional members. She gets more money from abortion-opposition and gun-rights groups than all but nine other members of the House.
Democrats argue that Bachmann is too conservative even for this conservative district. That line didn't work in 2006 for Democrat Patty Wetterling, a child-welfare advocate whom Republicans labeled too liberal.
But Tinklenberg calls himself a moderate Democrat and touts endorsements from police and fire groups and good grades from the National Rifle Association, which nonetheless endorsed Bachmann. He considers himself a Blue Dog Democrat, a group of fiscally conservative Democrats in Congress that has endorsed him.
Another candidate, Bob Anderson of the Independence Party, entered the race to bring mental health insurance on par with other health coverage. Because the rescue bill includes such a provision, he is now focusing on prohibiting insurance companies from denying coverage for applicants with pre-existing conditions. He also stands apart from the others by his refusal to accept campaign contributions and his attack on Congress as a tool of special interests.
Still, the Independence Party endorsed Tinklenberg in the district, which voted heavily for Jesse Ventura when he ran under the party's banner for governor in 1998. Tinklenberg reminds people that he promoted the Hiawatha light-rail line and the future North Star commuter line while he was Ventura's transportation commissioner.
Transportation and oil
Transportation issues still loom large in the district, where traffic snarls and long commutes are common.
"If I had something to do downtown, I'd take the line," Patti Trott said of the North Star rail line after talking with Tinklenberg in a restaurant in Elk River, which will have a commuter station. But her husband, Karl, wanted more money spent on roads, explaining, "our priorities are out of whack."
While Bachmann has denounced the use of federal earmarks for funding local projects, Elk River city administrator Lori Johnson told her during a recent visit that the city needs all the help it can get to fix roads to ease congestion.
"We don't want to be left behind if there are earmarks, and that's the way the game is played," Johnson said.
As gasoline prices spiked this summer, both Bachmann and Tinklenberg advocated more off-shore drilling and alternative sources of energy. But they differ sharply on emphasis.
Bachmann stresses lifting federal restrictions on oil drilling. "We sit on the answer to our own problem," she said at a recent debate. "We have more oil in the United States than all of Saudi Arabia, and that's just in Colorado, Utah and Wyoming in the form of shale oil."
Tinklenberg replied, "We need to be exploring more domestically ... but we also need to move aggressively in both the areas of conservation and the areas of alternatives."
He favors increasing automobile fuel efficiency standards, while Bachmann voted last year against a measure that raised them.
NOTE: BACHMANN WON THE SEAT HOUSE LAST 2006.
On another key issue, health care, Bachmann wants to make insurance premiums and other medical expenses tax-deductible for individuals to make it easier for consumers to buy health insurance. Tinklenberg favors offering the option of government-sponsored health insurance as a competitively priced alternative to private insurance plans to achieve universal health coverage.
During her freshman term, Bachmann sometimes made news with remarks that raised eyebrows.
This summer she said expanded oil drilling and other measures would bring "immediate and lasting relief" and cut gas prices to $2 a gallon. The U.S. Energy Information Administration said it's unlikely those steps would significantly reduce gas prices any time soon.
Shortly after taking office in 2007, Bachmann told the St. Cloud Times that Iran planned to partition Iraq and turn part of it into a terrorist training ground. Her office later said her remarks were "misconstrued."
"The only reason this district would ever be in play is Michele Bachmann herself," said David Wasserman, the editor in charge of assessing House races for the nonpartisan Cook Political Report in Washington. "She's a lightning rod in Minnesota politics. To the extent that Elwyn Tinklenberg is competitive, he's attracting some moderate Republican votes that's necessary to win this district."
Through mid-August Bachmann had $1.4 million in campaign contributions on hand. Tinklenberg had $200,000. Wetterling had four times as much cash at this point in her losing 2006 race.
Unless the party, union allies or others pump money into the race in the final weeks, Tinklenberg won't be able to afford many, if any, TV ads to counter a likely Bachmann ad blitz. She also has frequently appeared on "Larry King Live" to discuss national issues such as drilling or the financial rescue package.
About the bailout
Bachmann says the $700 billion bailout was unnecessary. She blames federal regulations for making it easier for people to obtain loans they couldn't repay, and she says the crisis could be overcome in part by changing accounting rules.
Tinklenberg labels her remedy "pretend accounting" and defends the package as needed to prevent credit from drying up in communities throughout the nation. He said significant oversight and curbs on executive compensation made the final package more palatable than its earlier version.
In talking with voters, he has been pointing out that Bachmann sits on the House Financial Services Committee that oversees the financial industry. She received more contributions from finance, insurance and real estate interests than any Congress member from Minnesota.
Wasserman said Bachmann needed "to be careful to ... avoid being seen as too corporate."
Smith said Bachmann's no vote on the bailout can be easily justified to constituents.
"The conservatives don't like big government and the liberals don't like bailing out fat cats," he said. "People in the middle just don't like the idea of giving away money."
But Tinklenberg can use his support of the package to define himself.
"There are signs that working-class individuals are finding their credit options disappearing," Smith said. "He's trying to show that he's a middle of the road politician who takes a pragmatic view of the problems facing the country."
Pat Doyle • 651-222-1210
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BUCKLAW - WE MEET AGAIN YOU POLITICAL HACK
So you haven't woke up yet? As I was writing my last rant - I noticed an ad running on the right side of the web page for an upcoming movie - something called "Mikey and Mylie make a porno movie" You see BUCKLAW we're all in this giant pot of water and you and I are frogs. (Can you picture that - are you with me?) and you know what happens next? Yes - the heat has been turned on under the pot and I have already jumped out of that pot. You BUCKLAW have decided to stay in the pot and continue towards your union with Winston Smith. I ask you: which flavor of Koolaid do you prefer to drink when your party boss passes the party favors? Lemon Lime perhaps? Grape? or maybe my favorite: Pickle Chocolate cherry.
posted by paulsworkshop on Oct 8, 08 at 10:44 pm |
0 of 6 people liked this comment.
Good God
Why are Republicans like paulsworkshop so rabid? Talk about fanatical. Blown up any abortion clinics lately? Paul go back to the workshop and close the door and stay there please. You're an embarassment even to the right. You seem fond of koolaid and pin the tail on the donkey, perhaps you just need some tail. Sleep tight knowing the Democrats will be in complete control of the House of Representatives, the Senate and we'll have a Democrat President. Good times are a coming and Palin will be back in Alaska "shootin" moose in a matter of weeks. Night night!
posted by Mplsuptown1 on Oct 8, 08 at 10:58 pm |
3 of 3 people liked this comment.
Michele Bachmann
I really cannot believe that anyone will vote for Mrs. Bachmann. While I have no doubt that she is a nice woman, she is an embarassment in the house. Her legislation (freedom to choose lightbulbs?), her behavior(the President is not a rockstar) and her take on the economy (too much regulation?) all add up to Mrs. Bachmann being a horrible representative. Unfortunately, my district is a yellow dog republican district and it is too late to get a yellow dog on the ballot......... Please vote for Tinklenburg!!
posted by kpersson8 on Oct 8, 08 at 11:00 pm |
8 of 9 people liked this comment.
You jumped from the pot and into the fire before you could make your point, Paul...
And that is the problem with the conservative side of political debate this election. Please tell us WHY we should put up with another four years of mismanagement and policies that have lead this country on a decline. What is it about an opportunity for correcting our direction as a country that has the right so angry? All people need to do is be semi-conscious and they'll see that things are not going well for Americans today. Can anybody disagree with that? Would you keep promoting the same ideas and strategies that have lead to where we are today if we wanted to change it for something better tomorrow?
posted by Bucklaw on Oct 8, 08 at 11:20 pm |
4 of 4 people liked this comment.
Most absurd comment of the night
Michelle Bachmann should be our next president? Oh my, oh my, oh my. That is a scary thought. Right up there with the terror of Sarah Palin possibly stepping into that spot. @@ I'm not sure what Svengali-like attraction this nutcase holds for her followers, but for the rest of us she is a true humiliation. Bachmann does have a national reputation. I have friends all over the country who look up her comments online just for laughs, sort of like they'd read a comic book. To paraphrase an ad regarding another Republican that I hear people quote everywhere I go these days, Michelle's gotta go.
posted by smccl001 on Oct 8, 08 at 11:38 pm |
3 of 3 people liked this comment.
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Campaign finance information through Aug 20, 2008
District 1 Total raised
Brian Davis, R
$614,193
Gregory Mikkelson, I
$0
Timothy Walz, D*
$2,047,132
$2,661,325
District 2 Total raised
John Kline, R*
$1,086,518
Stephen Sarvi, D
$261,861
$1,348,379
District 3 Total raised
David Dillon, I
$47,663
Ashwin Madia, D
$1,053,490
Erik Paulsen, R
$1,396,652
$2,497,805
District 4 Total raised
Edward Matthews, R
$32,100
Betty McCollum, D*
$487,304
$519,404
District 5 Total raised
Keith Ellison, D*
$952,026
Gregg Iverson, I
$0
Barbara White, R
$32,394
$984,420
District 6 Total raised
Bob Anderson, I
$0
Michele Bachmann, R*
$1,925,499
Elwin Tinklenberg, D
$533,260
$2,458,759
District 7 Total raised
Glen Menze, R
$2,621
Collin Peterson, D*
$829,221
$831,842
District 8 Total raised
Michael Cummins, R
$0
James Oberstar, D*
$1,635,075
$1,635,075
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Tuesday, September 23, 2008
DOLLAR FALLS AS BAILOUT PLAN ERODES CONFIDENCE IN U.S. FINANCES
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Dollar Falls as Bailout Plan Erodes Confidence in U.S. Finances
By Ron Harui and Ye Xie
Enlarge Image/Details
Sept. 23 (Bloomberg) -- The dollar fell for a second day against the yen on concern a U.S. government proposal to buy $700 billion of troubled assets will erode confidence in the nation's finances.
The greenback traded near a one-month low against the euro as Treasury Secretary Henry Paulson's plan would increase the nation's debt ceiling by 6.6 percent to $11.315 trillion. The currency also declined before U.S. reports this week that may show home sales slowed, adding to the case for the Federal Reserve to lower interest rates.
``Obviously there are genuine concerns over the sustainability of the U.S. fiscal position,'' said Tony Morriss, a senior currency strategist at Australia & New Zealand Banking Group in Sydney. ``The dollar will remain under pressure.''
The dollar declined to 105.26 yen as of 11:55 a.m. in Singapore from 105.51 yen late in New York yesterday, when it fell 1.8 percent. It traded at $1.4779 per euro from $1.4774 yesterday, when it touched $1.4866, the lowest since Aug. 22. The currency may weaken to 104.50 yen and $1.4900 in coming days, Morriss said. The euro dropped to 155.55 yen from 155.91 yen.
Foreign-exchange movements may be exaggerated because trading volumes are lower than normal due to a Japanese public holiday today, according to Morriss.
NOTE: MORRIS IS A WELL KNOWN CURRENCY STRATEGIST IN AUSTRALIA.
The U.S. currency has lost more than 6 percent versus the euro since touching a one-year high of $1.3882 on Sept. 11. The dollar reached $1.6038 per euro on July 15, the weakest since the European currency's 1999 inception.
Plotting Rescue
Paulson and Federal Reserve Chairman Ben S. Bernanke began plotting the rescue last week after New York-based Lehman Brothers Holdings Inc. filed for bankruptcy, the government seized control of American International Group Inc., and Merrill Lynch & Co. was forced into the arms of Bank of America Corp. Paulson and Bernanke testify before the Senate today on the banking crisis. The plan was sent to Congress Sept. 20.
The dollar also weakened on speculation that some U.S. politicians will oppose the passage of the government's plan, delaying the rescue of the beleaguered financial sector, according to UBS AG, the world's second-largest currency trader.
Republican presidential candidate John McCain called for limiting pay for executives of rescued firms, saying yesterday taxpayers shouldn't foot the bill for ``golden parachutes'' for officers of companies that have crumbled in the financial crisis.
The ``public is beginning to question why $700 billion in taxpayer's money is needed to bail out the banking sector,'' wrote Ashley Davies, a currency strategist at UBS in Singapore, in a client note today. ``Uncertainty over the implementation of Paulson's plan will keep the dollar on the back foot for now and clearly euro-dollar at $1.50 is in sight.''
The euro will end the year at $1.43, according to the median forecast of 42 analysts surveyed by Bloomberg News.
Carry Trades
The yen rose against 15 of the 16 most-active currencies on speculation investors will reduce so-called carry trades, in which traders get funds in a country with low borrowing costs and invest where returns are higher.
The benchmark interest rate of 0.5 percent in Japan compares with 5.25 percent in South Korea, 7 percent in Australia and 8.25 percent in Mexico, making the yen a favorite funding currency for the carry trade.
``I really like the Japanese yen,'' said Kathy Lien, director of currency research at GFT Forex in New York, in a Bloomberg television interview. ``We'll probably see the most profound weakness in the dollar against the yen just because it's a carry trade currency and a carry trade play.''
Japan's currency rose 0.9 percent to 10.91793 against the Korean won, gained 1 percent to 88.21 yen versus Australia's dollar and advanced 0.3 percent to 9.904 per Mexican peso from late in New York yesterday.
Economic Reports
Implied volatility on one-month dollar-yen options rose to 17.48 percent from 16.55 percent yesterday. Higher volatility may discourage carry trades as it suggests a larger risk of exchange-rate fluctuations that can erode profits.
The dollar also fell as home resales declined to 4.94 million last month from 5 million in July, according to a Bloomberg News survey of economists. The National Association of Realtors' report is scheduled for release tomorrow. The Commerce Department will report the next day that sales of new houses dropped to 510,000 from 515,000, a separate survey indicated.
The chance of the Fed cutting its 2 percent benchmark rate by a quarter-percentage point at its Oct. 29 policy meeting was 34 percent yesterday, compared with zero a month ago, futures contracts on the Chicago Board of Trade showed. The European Central Bank's main refinancing rate is 4.25 percent.
To contact the reporters on this story: Ron Harui in Singapore at rharui@bloomberg.net
Last Updated: September 23, 2008 00:31 EDT
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Dollar Falls as Bailout Plan Erodes Confidence in U.S. Finances
By Ron Harui and Ye Xie
Enlarge Image/Details
Sept. 23 (Bloomberg) -- The dollar fell for a second day against the yen on concern a U.S. government proposal to buy $700 billion of troubled assets will erode confidence in the nation's finances.
The greenback traded near a one-month low against the euro as Treasury Secretary Henry Paulson's plan would increase the nation's debt ceiling by 6.6 percent to $11.315 trillion. The currency also declined before U.S. reports this week that may show home sales slowed, adding to the case for the Federal Reserve to lower interest rates.
``Obviously there are genuine concerns over the sustainability of the U.S. fiscal position,'' said Tony Morriss, a senior currency strategist at Australia & New Zealand Banking Group in Sydney. ``The dollar will remain under pressure.''
The dollar declined to 105.26 yen as of 11:55 a.m. in Singapore from 105.51 yen late in New York yesterday, when it fell 1.8 percent. It traded at $1.4779 per euro from $1.4774 yesterday, when it touched $1.4866, the lowest since Aug. 22. The currency may weaken to 104.50 yen and $1.4900 in coming days, Morriss said. The euro dropped to 155.55 yen from 155.91 yen.
Foreign-exchange movements may be exaggerated because trading volumes are lower than normal due to a Japanese public holiday today, according to Morriss.
NOTE: MORRIS IS A WELL KNOWN CURRENCY STRATEGIST IN AUSTRALIA.
The U.S. currency has lost more than 6 percent versus the euro since touching a one-year high of $1.3882 on Sept. 11. The dollar reached $1.6038 per euro on July 15, the weakest since the European currency's 1999 inception.
Plotting Rescue
Paulson and Federal Reserve Chairman Ben S. Bernanke began plotting the rescue last week after New York-based Lehman Brothers Holdings Inc. filed for bankruptcy, the government seized control of American International Group Inc., and Merrill Lynch & Co. was forced into the arms of Bank of America Corp. Paulson and Bernanke testify before the Senate today on the banking crisis. The plan was sent to Congress Sept. 20.
The dollar also weakened on speculation that some U.S. politicians will oppose the passage of the government's plan, delaying the rescue of the beleaguered financial sector, according to UBS AG, the world's second-largest currency trader.
Republican presidential candidate John McCain called for limiting pay for executives of rescued firms, saying yesterday taxpayers shouldn't foot the bill for ``golden parachutes'' for officers of companies that have crumbled in the financial crisis.
The ``public is beginning to question why $700 billion in taxpayer's money is needed to bail out the banking sector,'' wrote Ashley Davies, a currency strategist at UBS in Singapore, in a client note today. ``Uncertainty over the implementation of Paulson's plan will keep the dollar on the back foot for now and clearly euro-dollar at $1.50 is in sight.''
The euro will end the year at $1.43, according to the median forecast of 42 analysts surveyed by Bloomberg News.
Carry Trades
The yen rose against 15 of the 16 most-active currencies on speculation investors will reduce so-called carry trades, in which traders get funds in a country with low borrowing costs and invest where returns are higher.
The benchmark interest rate of 0.5 percent in Japan compares with 5.25 percent in South Korea, 7 percent in Australia and 8.25 percent in Mexico, making the yen a favorite funding currency for the carry trade.
``I really like the Japanese yen,'' said Kathy Lien, director of currency research at GFT Forex in New York, in a Bloomberg television interview. ``We'll probably see the most profound weakness in the dollar against the yen just because it's a carry trade currency and a carry trade play.''
Japan's currency rose 0.9 percent to 10.91793 against the Korean won, gained 1 percent to 88.21 yen versus Australia's dollar and advanced 0.3 percent to 9.904 per Mexican peso from late in New York yesterday.
Economic Reports
Implied volatility on one-month dollar-yen options rose to 17.48 percent from 16.55 percent yesterday. Higher volatility may discourage carry trades as it suggests a larger risk of exchange-rate fluctuations that can erode profits.
The dollar also fell as home resales declined to 4.94 million last month from 5 million in July, according to a Bloomberg News survey of economists. The National Association of Realtors' report is scheduled for release tomorrow. The Commerce Department will report the next day that sales of new houses dropped to 510,000 from 515,000, a separate survey indicated.
The chance of the Fed cutting its 2 percent benchmark rate by a quarter-percentage point at its Oct. 29 policy meeting was 34 percent yesterday, compared with zero a month ago, futures contracts on the Chicago Board of Trade showed. The European Central Bank's main refinancing rate is 4.25 percent.
To contact the reporters on this story: Ron Harui in Singapore at rharui@bloomberg.net
Last Updated: September 23, 2008 00:31 EDT
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Monday, August 11, 2008
EXCHANGE TRADE CURRENCY FUTURES BY MONTH END
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Exchange trade currency futures by month end
Economy Bureau
Posted online: Wednesday, August 06, 2008 at 22:17 hrs
Updated On: Wednesday, August 06, 2008 at 22:17 hrs
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The Securities & Exchange Board of India (Sebi) will launch a pilot alternative payment system for public issues by August-end, which would allow investors to keep the application money in their bank accounts till they are allotted shares.
"Hopefully by August end, we will start the pilot project," Sebi chairman CB Bhave told reporters at a seminar organised by the Financial Planning Standards Board India.
NOTE: BHAVE IS A RESPECTED PERSONALITY IN SEBI.
Further, the markets regulator is expected to launch the exchange trade currency futures by this month-end. So far three entities—NSE, MCX-promoter Financial Technologies and a consortium of HDFC, Kotak and SBI —have evinced interest in starting these products.
The pilot payment system would enable investors to earn interest income on their application money till the time of allotment, while sparing them from the hassles of getting refunds in case they are not allotted shares.
Bhave said the current system of payment through cheques and the alternate system would co-exist. Commenting on the pilot system, he said, "We really don't know how the system works. We need to get used to it. We have to sort out glitches if there are any in the beginning."
The alternate payment system, called additional mode of payment through applications supported by blocked amount, will exempt retail investors from making full advance fees. Instead, it would let them retain the in bank accounts till the completion of allotment. The system is dependent on 'Self Certified Syndicate Banks' (SCSB) that would accept the application of retail investors. Banks that wish to offer the ASBA facility must submit a certificate to Sebi for inclusion of its name in the SCSB list. Under the scheme, the SCSBs will block funds to the extent of the bid amount, upload the details in the electronic bidding system and then unblock funds of finalisation of allotment.
This mode of payment will apply only to public issues offered under the book building route and only those retail investors would be part of this payment process who bid at the cut-off price as the single option and agree not to revise their bids.
On exchange traded currency futures, Sebi chairman said that three entities have applied for launching these products. When asked about the specific timeframe for the launch of currency futures, Bhave said this was not in the regulator's hands as the three entities are in various stages of preparing software and setting up hardware for the...
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» Exchage traded Currency
Posted by Shyam.P.Kunte on 2008-08-06 09:26:54.130376+05:30
Another exchange is getting born here for speculators mostly of FIIs/Foreign Banks/Corporates to defraud gullible small investors.How come SEBI has forgotten the current MTM losses fiasco and really it is surprising.In a Trade deficit country like ours and with huge unwanted Forex reserves it will spell disaster in long term.May god save our Nation from those tricky financial gambling products.JaiHind
Reply Forward Report Abuse
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Exchange trade currency futures by month end
Economy Bureau
Posted online: Wednesday, August 06, 2008 at 22:17 hrs
Updated On: Wednesday, August 06, 2008 at 22:17 hrs
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The Securities & Exchange Board of India (Sebi) will launch a pilot alternative payment system for public issues by August-end, which would allow investors to keep the application money in their bank accounts till they are allotted shares.
"Hopefully by August end, we will start the pilot project," Sebi chairman CB Bhave told reporters at a seminar organised by the Financial Planning Standards Board India.
NOTE: BHAVE IS A RESPECTED PERSONALITY IN SEBI.
Further, the markets regulator is expected to launch the exchange trade currency futures by this month-end. So far three entities—NSE, MCX-promoter Financial Technologies and a consortium of HDFC, Kotak and SBI —have evinced interest in starting these products.
The pilot payment system would enable investors to earn interest income on their application money till the time of allotment, while sparing them from the hassles of getting refunds in case they are not allotted shares.
Bhave said the current system of payment through cheques and the alternate system would co-exist. Commenting on the pilot system, he said, "We really don't know how the system works. We need to get used to it. We have to sort out glitches if there are any in the beginning."
The alternate payment system, called additional mode of payment through applications supported by blocked amount, will exempt retail investors from making full advance fees. Instead, it would let them retain the in bank accounts till the completion of allotment. The system is dependent on 'Self Certified Syndicate Banks' (SCSB) that would accept the application of retail investors. Banks that wish to offer the ASBA facility must submit a certificate to Sebi for inclusion of its name in the SCSB list. Under the scheme, the SCSBs will block funds to the extent of the bid amount, upload the details in the electronic bidding system and then unblock funds of finalisation of allotment.
This mode of payment will apply only to public issues offered under the book building route and only those retail investors would be part of this payment process who bid at the cut-off price as the single option and agree not to revise their bids.
On exchange traded currency futures, Sebi chairman said that three entities have applied for launching these products. When asked about the specific timeframe for the launch of currency futures, Bhave said this was not in the regulator's hands as the three entities are in various stages of preparing software and setting up hardware for the...
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» Exchage traded Currency
Posted by Shyam.P.Kunte on 2008-08-06 09:26:54.130376+05:30
Another exchange is getting born here for speculators mostly of FIIs/Foreign Banks/Corporates to defraud gullible small investors.How come SEBI has forgotten the current MTM losses fiasco and really it is surprising.In a Trade deficit country like ours and with huge unwanted Forex reserves it will spell disaster in long term.May god save our Nation from those tricky financial gambling products.JaiHind
Reply Forward Report Abuse
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Is This The Dollar Breakout?
Friday, 08 August 2008 19:00:53 GMT
Printer Friendly | Email Article | RSS | Previous articles
Previous Articles
* Aug 08 - Is This The Dollar Breakout?
* Aug 07 - Can The Dollar Rally Continue With Fed Hike Forecasts Fading?
* Jul 31 - Will GDP And NFP Readings Curb Expectations Of A Fed Hike?
* Jul 31 - Rising Long Interest Threatens A Euro Breakdown
* Jul 31 - Dollar Decline Should Prove Corrective
* Jul 31 - Yen Crosses Bearish at least in the Short Term
* Jul 30 - Dollar Rally Picks Up; Countertrend Decline Expected Though
* Jul 30 - Euro Crosses Tread Water
* Jul 29 - Canadian Dollar Triangle Break Looms
* Jul 29 - Euro Crosses Tread Water
* Jul 28 - Swiss Franc Sentiment Will Likely Deteriorate
* Jul 28 - Top Currency Trading Ideas for the Week of July 28, 2008
* Jul 25 - The Buck Does NOT Stop Here
* Jul 25 - Australian Dollar Crosses Prone to Corrections
* Jul 24 - Dollar Rally Pushing Limits of Bearish Case
* Jul 24 - British Pound Crosses Accelerate Higher
* Jul 23 - Euro Bullish Opportunity Against 1.5611
* Jul 23 - Yen Crosses: Declines Should Be Bought
* Jul 22 - Euro Drop Below 1.5783 Probable Before Further Gains
* Jul 22 - Euro Crosses Still Bullish
Written by John Kicklighter, Currency Strategist
August 8th, 2008 will be known for two events: the start of the 2008 Beijing Olympics and the massive, bullish breakout for the US dollar. The currency made its move across the board, taking out significant technical (and psychological) levels against most of its major counterparts and marking its biggest one-day advance on a trade-weighted basis in over five years.
NOTE: DOLLAR VALUE HAS A WORLDWIDE IMPORTANCE.
Five months after testing a record low and through four months of congestive price action, fundamentals have slowly built up (though the US data hasn't exactly been encouraging) behind an eventual rebound in the massively oversold currency. With liquidity draining for the weekend, the market now has time to contemplate: is this the true trend reversal and how will this effect my trading in the long term?
Shifting Gears On Fundamentals
Getting to the point where traders and economists are debating whether or not we have entered a new bull leg for the dollar – where until recently the consensus was the currency would soon be replaced as an anchor to pegs and could lose its status as the world's leading currency to the euro – took time and a global economic slowdown that would ultimately leave the beleaguered US with the most impressive balance sheet.
Since last summer's subprime meltdown, the Federal Reserve has cut the benchmark lending rate by 325 basis points, the housing sector has entered a recession not seen since the Great Depression, and employment numbers have contracted for the longest period since 2005. With conditions like these, why would the greenback be on the verge of a major advance? The answer is simple. Because despite the United State's current predicament, the outlook for the world's largest economy is fundamentally better than that of its industrialized counterparts.
From a growth perspective, revisions to annualized GDP numbers show that the US contracted for the first time in six years through the final quarter of 2007. However, by the time this slowdown was confirmed, more timely data was already suggesting the worst has already passed with second quarter growth figures reporting 1.9 percent expansion. For a fundamental backdrop that has been completely overshadowed by consistently disappointing data, this broad reading alone has catalyzed confidence that recessions in certain areas of the overall economy will be leveled out by strength in others. In contrast, the forecast for other economies is deteriorating. The Euro-Zone GDP number due next week is expected to match its slowest annualized pace in four-and-a-half years as domestic spending falters and exports suffer from curtailed demand and unfavorable exchange rates. In the UK, the local housing recession is already the worst in recent history and it looks to worsen with time. Add to that, inflation that has stifled business activity and consumer spending; and projections for growth are low. Finally, there is Japan. The Asian giant has struggled since the late 90s financial crisis, and recently consumer spending and a housing slump has slipped into critical levels. To top it off, for the first time since 2001, the Japanese government's assessment of domestic growth was downgraded to 'weakening' – what many consider an admission that the economy has already entered a recession.
Interest Rates' Contribution
A partial reflection of long-term fundamentals (but the primary driver for the currency market), interest rate expectations have also taken a dramatic turn in the past six months and even in the past few weeks. While current benchmark lending rates are still heavily skewed in favor of those well known carry currencies (the New Zealand Dollar, Australian Dollar, Pound), their forecasted change over the coming 12 months priced into overnight interest swaps offers the road map for speculation in the underlying currency pairs. From the spreadsheet below, we can see that at the beginning of the year, the market was expecting 104 basis points of easing through the following 12 months (the Fed actually cut 100 basis points through the first half – leading the dollar to its record lows). Since then however, the outlook has changed dramatically, with 78 basis points or roughly three quarter-point hikes expected by next August. The expectations for all the other major central banks are no where near this change, and the ECB, BoJ, RBA and RBNZ have actually turned negative. (Read more about interest rates' impact on the dollar move)
Top1_8-8
The Outlook
Today's dollar rally easily marks a technical turning point for many of the most liquid dollar-denominated majors (see Jamie's technicals for a full briefing on this); but the currency certainly hasn't cleared all hurdles. Technically, while EURUSD and GBPUSD have dropped below major support at 1.5300 and 1.9400 respectively, there is still resistance for the greenback on a trade-weighted basis. A look at the Dollar Index reveals the dominate trend from the late 2005 bearish trend reversal has yet to be tested. This will no doubt require significant momentum on the dollar's part to charge up enough strength to breach such a noteworthy level.
The fundamental scene is even more difficult to reconcile with a sustained dollar rally. While its major trade partners are just now catching the same cold that the US has been trying to shake, conditions in America are still worse. The housing recession is deepening, business investment has dried up, lending has frozen and now the consumer (the largest component for economic growth) is being assailed. Combine an unemployment rate at a four-year high and wage growth slowing to a two-and-a-half year low with inflation not seen in 17-years and we have sentiment near three decade lows. If the consumer sector falters, the chances for GDP to further rebound on the virtue of exports alone are slim. In turn, concerns of a recession would offer no confidence for rate hikes.
Top2_8-8
For the dollar to maintain its current trajectory and confirm a major trend change, the currency and economy will need to answer these issues. Regardless of the technical breaks in the majors, the dollar will need to break resistance in the trade-weighted index. For the long term, the fundamentals will need to back the dollar fully. Growth factors will grow increasingly important – specifically consumer spending and sentiment, business activity, trade and the housing market will need to show genuine evidence of a bottom. Ultimately, though, the true determinate will be interest rate expectations. Three quarter point hikes are scheduled for the coming 12 months, but such a major exchange rate event will need confirmation of just such a monetary policy change early in the forecast period. What's more, a Fed hike would need to outpace any hawkish ambitions from other central banks.
Written by John Kicklighter, Currency Strategist for DailyFX.com
Have any questions or comments relating to this or any other articles written by John? Email him at jkicklighter@dailyfx.com.
< Prev [ Back ]
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* Dollar Keeps Pressure on Majors: Buy Dollar Declines
* Dollar Strength to Continue Near Term, but then Prone to a Correction
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Is This The Dollar Breakout?
Friday, 08 August 2008 19:00:53 GMT
Printer Friendly | Email Article | RSS | Previous articles
Previous Articles
* Aug 08 - Is This The Dollar Breakout?
* Aug 07 - Can The Dollar Rally Continue With Fed Hike Forecasts Fading?
* Jul 31 - Will GDP And NFP Readings Curb Expectations Of A Fed Hike?
* Jul 31 - Rising Long Interest Threatens A Euro Breakdown
* Jul 31 - Dollar Decline Should Prove Corrective
* Jul 31 - Yen Crosses Bearish at least in the Short Term
* Jul 30 - Dollar Rally Picks Up; Countertrend Decline Expected Though
* Jul 30 - Euro Crosses Tread Water
* Jul 29 - Canadian Dollar Triangle Break Looms
* Jul 29 - Euro Crosses Tread Water
* Jul 28 - Swiss Franc Sentiment Will Likely Deteriorate
* Jul 28 - Top Currency Trading Ideas for the Week of July 28, 2008
* Jul 25 - The Buck Does NOT Stop Here
* Jul 25 - Australian Dollar Crosses Prone to Corrections
* Jul 24 - Dollar Rally Pushing Limits of Bearish Case
* Jul 24 - British Pound Crosses Accelerate Higher
* Jul 23 - Euro Bullish Opportunity Against 1.5611
* Jul 23 - Yen Crosses: Declines Should Be Bought
* Jul 22 - Euro Drop Below 1.5783 Probable Before Further Gains
* Jul 22 - Euro Crosses Still Bullish
Written by John Kicklighter, Currency Strategist
August 8th, 2008 will be known for two events: the start of the 2008 Beijing Olympics and the massive, bullish breakout for the US dollar. The currency made its move across the board, taking out significant technical (and psychological) levels against most of its major counterparts and marking its biggest one-day advance on a trade-weighted basis in over five years.
NOTE: DOLLAR VALUE HAS A WORLDWIDE IMPORTANCE.
Five months after testing a record low and through four months of congestive price action, fundamentals have slowly built up (though the US data hasn't exactly been encouraging) behind an eventual rebound in the massively oversold currency. With liquidity draining for the weekend, the market now has time to contemplate: is this the true trend reversal and how will this effect my trading in the long term?
Shifting Gears On Fundamentals
Getting to the point where traders and economists are debating whether or not we have entered a new bull leg for the dollar – where until recently the consensus was the currency would soon be replaced as an anchor to pegs and could lose its status as the world's leading currency to the euro – took time and a global economic slowdown that would ultimately leave the beleaguered US with the most impressive balance sheet.
Since last summer's subprime meltdown, the Federal Reserve has cut the benchmark lending rate by 325 basis points, the housing sector has entered a recession not seen since the Great Depression, and employment numbers have contracted for the longest period since 2005. With conditions like these, why would the greenback be on the verge of a major advance? The answer is simple. Because despite the United State's current predicament, the outlook for the world's largest economy is fundamentally better than that of its industrialized counterparts.
From a growth perspective, revisions to annualized GDP numbers show that the US contracted for the first time in six years through the final quarter of 2007. However, by the time this slowdown was confirmed, more timely data was already suggesting the worst has already passed with second quarter growth figures reporting 1.9 percent expansion. For a fundamental backdrop that has been completely overshadowed by consistently disappointing data, this broad reading alone has catalyzed confidence that recessions in certain areas of the overall economy will be leveled out by strength in others. In contrast, the forecast for other economies is deteriorating. The Euro-Zone GDP number due next week is expected to match its slowest annualized pace in four-and-a-half years as domestic spending falters and exports suffer from curtailed demand and unfavorable exchange rates. In the UK, the local housing recession is already the worst in recent history and it looks to worsen with time. Add to that, inflation that has stifled business activity and consumer spending; and projections for growth are low. Finally, there is Japan. The Asian giant has struggled since the late 90s financial crisis, and recently consumer spending and a housing slump has slipped into critical levels. To top it off, for the first time since 2001, the Japanese government's assessment of domestic growth was downgraded to 'weakening' – what many consider an admission that the economy has already entered a recession.
Interest Rates' Contribution
A partial reflection of long-term fundamentals (but the primary driver for the currency market), interest rate expectations have also taken a dramatic turn in the past six months and even in the past few weeks. While current benchmark lending rates are still heavily skewed in favor of those well known carry currencies (the New Zealand Dollar, Australian Dollar, Pound), their forecasted change over the coming 12 months priced into overnight interest swaps offers the road map for speculation in the underlying currency pairs. From the spreadsheet below, we can see that at the beginning of the year, the market was expecting 104 basis points of easing through the following 12 months (the Fed actually cut 100 basis points through the first half – leading the dollar to its record lows). Since then however, the outlook has changed dramatically, with 78 basis points or roughly three quarter-point hikes expected by next August. The expectations for all the other major central banks are no where near this change, and the ECB, BoJ, RBA and RBNZ have actually turned negative. (Read more about interest rates' impact on the dollar move)
Top1_8-8
The Outlook
Today's dollar rally easily marks a technical turning point for many of the most liquid dollar-denominated majors (see Jamie's technicals for a full briefing on this); but the currency certainly hasn't cleared all hurdles. Technically, while EURUSD and GBPUSD have dropped below major support at 1.5300 and 1.9400 respectively, there is still resistance for the greenback on a trade-weighted basis. A look at the Dollar Index reveals the dominate trend from the late 2005 bearish trend reversal has yet to be tested. This will no doubt require significant momentum on the dollar's part to charge up enough strength to breach such a noteworthy level.
The fundamental scene is even more difficult to reconcile with a sustained dollar rally. While its major trade partners are just now catching the same cold that the US has been trying to shake, conditions in America are still worse. The housing recession is deepening, business investment has dried up, lending has frozen and now the consumer (the largest component for economic growth) is being assailed. Combine an unemployment rate at a four-year high and wage growth slowing to a two-and-a-half year low with inflation not seen in 17-years and we have sentiment near three decade lows. If the consumer sector falters, the chances for GDP to further rebound on the virtue of exports alone are slim. In turn, concerns of a recession would offer no confidence for rate hikes.
Top2_8-8
For the dollar to maintain its current trajectory and confirm a major trend change, the currency and economy will need to answer these issues. Regardless of the technical breaks in the majors, the dollar will need to break resistance in the trade-weighted index. For the long term, the fundamentals will need to back the dollar fully. Growth factors will grow increasingly important – specifically consumer spending and sentiment, business activity, trade and the housing market will need to show genuine evidence of a bottom. Ultimately, though, the true determinate will be interest rate expectations. Three quarter point hikes are scheduled for the coming 12 months, but such a major exchange rate event will need confirmation of just such a monetary policy change early in the forecast period. What's more, a Fed hike would need to outpace any hawkish ambitions from other central banks.
Written by John Kicklighter, Currency Strategist for DailyFX.com
Have any questions or comments relating to this or any other articles written by John? Email him at jkicklighter@dailyfx.com.
< Prev [ Back ]
©2008 DailyFX. All Rights Reserved.
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BSE plan to launch currency futures by September
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Press Trust Of India
Kolkata, August 10, 2008
First Published: 10:25 IST(10/8/2008)
Last Updated: 10:26 IST(10/8/2008)
Print
The Bombay Stock Exchange is planning to launch Exchange Traded Currency Futures (ETCF) contracts by early September after SEBI officials inspect its system next week.
"Securities and Exchange Board of India (SEBI) will come next week to inspect our system, which is already in place, and we hope to launch the future contracts in currency by end of August or early September," the outgoing BSE managing director and CEO Rajnikant Patel told PTI.
NOTE: PATEL IS AWELL RESPECTED PERSONALITY IN BSE.
"Currency futures segment will be managed by a separate division of the exchange under a different structure and regulatory set-up. It will also have separate settlement from stock futures and cash segment as well as fresh set of members to participate in the currency futures market," Patel said.
BSE has already applied with SEBI for setting up the currency derivatives segment and is in line with the recommendations made by RBI-SEBI Standing Technical Committee report on currency futures which was released in May.
It was also exploring strategic arrangements with entities in the forex market to gather domain expertise. Strategic arrangement with established entities in the forex market would 'lend reach, domain expertise and an active participation to this evolving segment.'
The ETCF contracts would facilitate more transparency, efficient price discovery, enable better counter party credit risk management, wider participation and reduced transaction costs.
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BSE plan to launch currency futures by September
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Kolkata, August 10, 2008
First Published: 10:25 IST(10/8/2008)
Last Updated: 10:26 IST(10/8/2008)
The Bombay Stock Exchange is planning to launch Exchange Traded Currency Futures (ETCF) contracts by early September after SEBI officials inspect its system next week.
"Securities and Exchange Board of India (SEBI) will come next week to inspect our system, which is already in place, and we hope to launch the future contracts in currency by end of August or early September," the outgoing BSE managing director and CEO Rajnikant Patel told PTI.
NOTE: PATEL IS AWELL RESPECTED PERSONALITY IN BSE.
"Currency futures segment will be managed by a separate division of the exchange under a different structure and regulatory set-up. It will also have separate settlement from stock futures and cash segment as well as fresh set of members to participate in the currency futures market," Patel said.
BSE has already applied with SEBI for setting up the currency derivatives segment and is in line with the recommendations made by RBI-SEBI Standing Technical Committee report on currency futures which was released in May.
It was also exploring strategic arrangements with entities in the forex market to gather domain expertise. Strategic arrangement with established entities in the forex market would 'lend reach, domain expertise and an active participation to this evolving segment.'
The ETCF contracts would facilitate more transparency, efficient price discovery, enable better counter party credit risk management, wider participation and reduced transaction costs.
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This Tendulkar to bat for PMO
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Showing patriotism, through brick & mortar
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'Pak Prez embezzled aid worth $700 mn'
Saturday, August 2, 2008
HEWLETT-PACKARD SPENT $450,000 TO LOBBY IN 2Q
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Hewlett-Packard spent $450,000 to lobby in 2Q
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updated 2:32 p.m. ET July 30, 2008
WASHINGTON - Hewlett-Packard Co. spent $450,000 in the second quarter to lobby on trade and currency issues, patent and immigration reform, and other issues, according to a recent disclosure form.
NOTE: HEWLETT-PACKARD IS WELL KNOWN IN THE COMPUTER INDUSTRY.
The Palo Alto, Calif.-based company, which makes printers, computers, servers and other technology products and services, also lobbied on electronics recycling, energy efficiency measures and climate change proposals.
In addition, Hewlett-Packard lobbied on data security legislation and proposals to crack down on malicious computer programs known as spyware, which can surreptitiously access hard drives to track online behavior and steal sensitive personal data.
Story continues below ↓advertisement
The company also lobbied on the No Child Left Behind Act and efforts to promote science, technology, math and engineering education.
Besides Congress, Hewlett-Packard lobbied the Patent and Trademark Office, Federal Communications Commission, the departments of Justice and Commerce, and other agencies, according to a disclosure form filed with the Senate's clerk office on July18.
Among those registered to lobby for the company was Kristy Sternhell, a former staffer to Senate Majority Leader Harry Reid, D-Nev.
Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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Hewlett-Packard spent $450,000 to lobby in 2Q
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updated 2:32 p.m. ET July 30, 2008
WASHINGTON - Hewlett-Packard Co. spent $450,000 in the second quarter to lobby on trade and currency issues, patent and immigration reform, and other issues, according to a recent disclosure form.
NOTE: HEWLETT-PACKARD IS WELL KNOWN IN THE COMPUTER INDUSTRY.
The Palo Alto, Calif.-based company, which makes printers, computers, servers and other technology products and services, also lobbied on electronics recycling, energy efficiency measures and climate change proposals.
In addition, Hewlett-Packard lobbied on data security legislation and proposals to crack down on malicious computer programs known as spyware, which can surreptitiously access hard drives to track online behavior and steal sensitive personal data.
Story continues below ↓advertisement
The company also lobbied on the No Child Left Behind Act and efforts to promote science, technology, math and engineering education.
Besides Congress, Hewlett-Packard lobbied the Patent and Trademark Office, Federal Communications Commission, the departments of Justice and Commerce, and other agencies, according to a disclosure form filed with the Senate's clerk office on July18.
Among those registered to lobby for the company was Kristy Sternhell, a former staffer to Senate Majority Leader Harry Reid, D-Nev.
Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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Friday, August 1, 2008
OBAMA AND MCCAIN TRADE OLD-SCHOOL POLITICAL JABS
The Associated Press
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Democratic presidential candidate, Sen. Barack Obama, D-Ill., speaks at a town hall-style meeting in Cedar Rapids, Iowa, Thursday, July 31, 2008. (AP Photo/Jae C. Hong)
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Kansas City Star - 1 hour ago
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©2008 Google - Map data ©2008 NAVTEQ™ - Terms of Use
Obama and McCain trade old-school political jabs
By MIKE GLOVER – 9 hours ago
CEDAR RAPIDS, Iowa (AP) — Barack Obama and John McCain traded old-school political jabs Thursday, with McCain contending that he had been wrongly accused of planning a racial attack and Obama countering that his opponent was inventing a controversy to avoid talking about the issues.
After months of contending that their campaigns would eschew personal attacks as part of a new kind of politics, the presumptive presidential nominees of the major parties turned nasty over what Obama meant when he said McCain and other Republicans would try to scare voters by pointing out that the Democratic candidate "doesn't look like all those other presidents on the dollar bills."
NOTE: OBAMA AND MCCAIN ARE PRESIDENTIAL CANDIDATES IN THE UNITED STATES OF AMERICA.
McCain took on the role of aggrieved victim, his campaign waiting almost a day after Obama's remarks to charge that he had injected race into the presidential campaign. "Barack Obama has played the race card, and he played it from the bottom of the deck. Its divisive, negative, shameful and wrong," McCain campaign manager Rick Davis said.
Obama, smarting from McCain's constant thumping about a first-term senator's thin resume wrapped inside a charismatic speaking style, countered that being black had nothing to do with his prediction of the nature of attacks yet to come. However, comparing his looks to those of presidents on U.S. currency — all white men — gave his opponents a chance to say the man who would be the first black president was subtly charging racism.
Not so, Obama's campaign said, explaining that Obama was referring only to being new to Washington politics.
"Barack Obama in no way believes that the McCain campaign is using race as an issue, but he does believe they're using the same old low-road politics to distract voters from the real issues in this campaign, and those are the issues he'll continue to talk about," Obama campaign spokesman Bill Burton said.
Obama on Wednesday told a gymnasium full of people in Springfield, Mo., that McCain and President Bush will resort to scare tactics to maintain their hold on the White House because they have little else to offer voters.
"Nobody thinks that Bush and McCain have a real answer to the challenges we face. So what they're going to try to do is make you scared of me," Obama said. "You know, 'He's not patriotic enough, he's got a funny name,' you know, 'He doesn't look like all those other presidents on the dollar bills.'"
NOTE: BUSH IS THE CURRENT PRESIDENT OF THE UNITED STATES OF AMERICA.
While calling to mind the images of presidents on the nation's paper money — George Washington, Abraham Lincoln, Andrew Jackson and Ulysses S. Grant are on the bills most commonly used — Obama didn't make clear what distinctions he thinks McCain is likely to raise. Besides being white, they were for the most part much older than Obama when elected.
McCain has not raised Obama's race as an issue in the campaign; he has said that Obama lacks experience.
When asked by The Associated Press what Obama meant by the comparison, Obama strategist Robert Gibbs said Thursday morning that the senator was not referring to race.
"What Barack Obama was talking about was that he didn't get here after spending decades in Washington," Gibbs said. "There is nothing more to this than the fact that he was describing that he was new to the political scene. He was referring to the fact that he didn't come into the race with the history of others. It is not about race."
Obama often makes references to his distinctions as a candidate, such as saying there are doubts among some voters because he has "a funny name." At times he refers to his race as well, saying he looks different from any previous candidate but then adding that the differences are not just about race. Addressing supporters Tuesday night at a fundraiser in Springfield, he said, "It's a leap, electing a 46-year-old black guy named Barack Obama."
On the Net:
* McCain: http://www.johnmccain.com
* Obama: http://www.barackobama.com
Hosted by Google
Copyright © 2008 The Associated Press. All rights reserved.
Go to Google News
Photo 1 of 4
Democratic presidential candidate, Sen. Barack Obama, D-Ill., speaks at a town hall-style meeting in Cedar Rapids, Iowa, Thursday, July 31, 2008. (AP Photo/Jae C. Hong)
Related News
* McCain accuses Obama of playing the 'race card'
Kansas City Star - 1 hour ago
* Connelly: McCain changing for the worse
Seattle Post Intelligencer - 3 hours ago
* America's big 'beauty contest' hots up
ABC Online - 3 hours ago
Full coverage »
©2008 Google - Map data ©2008 NAVTEQ™ - Terms of Use
Obama and McCain trade old-school political jabs
By MIKE GLOVER – 9 hours ago
CEDAR RAPIDS, Iowa (AP) — Barack Obama and John McCain traded old-school political jabs Thursday, with McCain contending that he had been wrongly accused of planning a racial attack and Obama countering that his opponent was inventing a controversy to avoid talking about the issues.
After months of contending that their campaigns would eschew personal attacks as part of a new kind of politics, the presumptive presidential nominees of the major parties turned nasty over what Obama meant when he said McCain and other Republicans would try to scare voters by pointing out that the Democratic candidate "doesn't look like all those other presidents on the dollar bills."
NOTE: OBAMA AND MCCAIN ARE PRESIDENTIAL CANDIDATES IN THE UNITED STATES OF AMERICA.
McCain took on the role of aggrieved victim, his campaign waiting almost a day after Obama's remarks to charge that he had injected race into the presidential campaign. "Barack Obama has played the race card, and he played it from the bottom of the deck. Its divisive, negative, shameful and wrong," McCain campaign manager Rick Davis said.
Obama, smarting from McCain's constant thumping about a first-term senator's thin resume wrapped inside a charismatic speaking style, countered that being black had nothing to do with his prediction of the nature of attacks yet to come. However, comparing his looks to those of presidents on U.S. currency — all white men — gave his opponents a chance to say the man who would be the first black president was subtly charging racism.
Not so, Obama's campaign said, explaining that Obama was referring only to being new to Washington politics.
"Barack Obama in no way believes that the McCain campaign is using race as an issue, but he does believe they're using the same old low-road politics to distract voters from the real issues in this campaign, and those are the issues he'll continue to talk about," Obama campaign spokesman Bill Burton said.
Obama on Wednesday told a gymnasium full of people in Springfield, Mo., that McCain and President Bush will resort to scare tactics to maintain their hold on the White House because they have little else to offer voters.
"Nobody thinks that Bush and McCain have a real answer to the challenges we face. So what they're going to try to do is make you scared of me," Obama said. "You know, 'He's not patriotic enough, he's got a funny name,' you know, 'He doesn't look like all those other presidents on the dollar bills.'"
NOTE: BUSH IS THE CURRENT PRESIDENT OF THE UNITED STATES OF AMERICA.
While calling to mind the images of presidents on the nation's paper money — George Washington, Abraham Lincoln, Andrew Jackson and Ulysses S. Grant are on the bills most commonly used — Obama didn't make clear what distinctions he thinks McCain is likely to raise. Besides being white, they were for the most part much older than Obama when elected.
McCain has not raised Obama's race as an issue in the campaign; he has said that Obama lacks experience.
When asked by The Associated Press what Obama meant by the comparison, Obama strategist Robert Gibbs said Thursday morning that the senator was not referring to race.
"What Barack Obama was talking about was that he didn't get here after spending decades in Washington," Gibbs said. "There is nothing more to this than the fact that he was describing that he was new to the political scene. He was referring to the fact that he didn't come into the race with the history of others. It is not about race."
Obama often makes references to his distinctions as a candidate, such as saying there are doubts among some voters because he has "a funny name." At times he refers to his race as well, saying he looks different from any previous candidate but then adding that the differences are not just about race. Addressing supporters Tuesday night at a fundraiser in Springfield, he said, "It's a leap, electing a 46-year-old black guy named Barack Obama."
On the Net:
* McCain: http://www.johnmccain.com
* Obama: http://www.barackobama.com
Hosted by Google
Copyright © 2008 The Associated Press. All rights reserved.
Thursday, July 31, 2008
DOLLAR MAY EXTEND DECLINE AGAINST EURO BEFORE PAYROLL REPORT
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Dollar May Extend Decline Against Euro Before Payroll Report
By Ye Xie
Aug. 1 (Bloomberg) -- The dollar may extend its decline against the euro before a U.S. government report forecast to show employers cut payrolls in July for a seventh month.
The currency dropped yesterday as the U.S. economy grew less than forecast in the second quarter and initial jobless claims rose last week to a five-year high. The dollar pared its losses as crude oil prices fell, deepening the decline last month to 11 percent.
NOTE: TOM FITZPATRICK IS A WELL RESPECTED PERSONALITY IN THE TRADE CURRENCY INDUSTRY.
``The deterioration of the labor market is accelerating,'' said Tom Fitzpatrick, global head of currency strategy at Citigroup Global Markets Inc. in New York. ``I don't think we've seen the highs in the euro-dollar yet.''
The dollar traded at $1.5601 per euro at 6:24 a.m. in Tokyo, after dropping 0.2 percent yesterday. It reached a record low of $1.6038 on July 15. The dollar was at 107.84 yen, following a 0.2 percent decline. The euro was little changed at 168.26 yen.
South Africa's rand rose as much as 1.2 percent yesterday to 7.3014 against the dollar, the highest since February, after a report showed the country's trade deficit unexpectedly narrowed in June. The rand increased 6 percent in July, for the best performance among the world's major currencies.
Crude oil fell 2.2 percent to $124.05 a barrel on the New York Mercantile Exchange yesterday. The euro-dollar exchange rate and oil have had a correlation of 0.9 in the past year, according to Bloomberg calculations based on their value changes. A reading of 1 would mean they moved in lockstep.
`Quite Heavy'
NOTE: ERATIC CHANGES IN PRICING OF CRUDE OIL GIVES ERATIC EFFECTS.
``Oil looks quite heavy, and commodities seem to be in a longer-term downward trend,'' said Shaun Osborne, chief currency strategist at TD Securities Inc. in Toronto. ``It lent some support to the dollar.''
Some companies also bought the dollar at month-end to balance their books, according to Osborne.
Futures contracts on the Chicago Board of Trade showed yesterday a 30 percent chance that the Fed will raise its 2 percent target rate for overnight loans between banks by at least a quarter-percentage point by Sept. 16, down from 38 percent odds on July 30. Most traders expect policy makers to hold borrowing costs unchanged when they next meet Aug. 5.
U.S. gross domestic product increased at an annual rate of 1.9 percent in the second quarter, the Commerce Department reported yesterday. The median forecast of 79 economists surveyed by Bloomberg News was for an advance of 2.3 percent. The report also showed that a recession may have begun in the final three months of 2007, as GDP was revised to indicate a contraction in that period.
Jobless Claims
Initial jobless claims rose to 448,000 in the week ended July 26, from a revised 404,000 the prior week, the Labor Department said yesterday. The total number of initial filings last week was the highest since April 2003.
The U.S. currency touched a one-month high against the euro on July 30 after an ADP Employer Services report showed companies unexpectedly added jobs last month.
``The dollar's rally was built on a shaky foundation,'' said Stephen Malyon, co-head of currency strategy at Scotia Capital Inc. in Toronto. ``There's more downside risk to growth.''
U.S. non-farm payrolls dropped by 75,000 last month, following a decline of 62,000 in June, according to the median forecast of 79 economists surveyed by Bloomberg News. The Labor Department's report, which includes government hiring, is scheduled to be released at 8:30 a.m. in Washington.
Dollar in July
The greenback strengthened 1 percent against the euro and 1.6 percent versus the yen in July on speculation the U.S. growth slowdown is spreading to other developed nations. Reports last week showed German business confidence declined and European manufacturing and services contracted.
``The dollar bounce is nothing short of stunning,'' said Brian Dolan, chief currency strategist at FOREX.com, a unit of online currency trading firm Gain Capital in Bedminster, New Jersey. ``Economies elsewhere are showing fresh signs of deterioration.''
Turkey's lira advanced to a six-month high yesterday after the Constitutional Court's decision on July 30 to reject a call by prosecutors to ban the ruling party, which is seeking to introduce Islamic law. The lira climbed as much as 2.4 percent to 1.1555 per dollar, its strongest since Jan. 15. It gained 5.4 percent versus the dollar in July.
To contact the reporter on this story: Ye Xie in New York at yxie6@bloomberg.net
Last Updated: July 31, 2008 17:28 EDT
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Dollar May Extend Decline Against Euro Before Payroll Report
By Ye Xie
Aug. 1 (Bloomberg) -- The dollar may extend its decline against the euro before a U.S. government report forecast to show employers cut payrolls in July for a seventh month.
The currency dropped yesterday as the U.S. economy grew less than forecast in the second quarter and initial jobless claims rose last week to a five-year high. The dollar pared its losses as crude oil prices fell, deepening the decline last month to 11 percent.
NOTE: TOM FITZPATRICK IS A WELL RESPECTED PERSONALITY IN THE TRADE CURRENCY INDUSTRY.
``The deterioration of the labor market is accelerating,'' said Tom Fitzpatrick, global head of currency strategy at Citigroup Global Markets Inc. in New York. ``I don't think we've seen the highs in the euro-dollar yet.''
The dollar traded at $1.5601 per euro at 6:24 a.m. in Tokyo, after dropping 0.2 percent yesterday. It reached a record low of $1.6038 on July 15. The dollar was at 107.84 yen, following a 0.2 percent decline. The euro was little changed at 168.26 yen.
South Africa's rand rose as much as 1.2 percent yesterday to 7.3014 against the dollar, the highest since February, after a report showed the country's trade deficit unexpectedly narrowed in June. The rand increased 6 percent in July, for the best performance among the world's major currencies.
Crude oil fell 2.2 percent to $124.05 a barrel on the New York Mercantile Exchange yesterday. The euro-dollar exchange rate and oil have had a correlation of 0.9 in the past year, according to Bloomberg calculations based on their value changes. A reading of 1 would mean they moved in lockstep.
`Quite Heavy'
NOTE: ERATIC CHANGES IN PRICING OF CRUDE OIL GIVES ERATIC EFFECTS.
``Oil looks quite heavy, and commodities seem to be in a longer-term downward trend,'' said Shaun Osborne, chief currency strategist at TD Securities Inc. in Toronto. ``It lent some support to the dollar.''
Some companies also bought the dollar at month-end to balance their books, according to Osborne.
Futures contracts on the Chicago Board of Trade showed yesterday a 30 percent chance that the Fed will raise its 2 percent target rate for overnight loans between banks by at least a quarter-percentage point by Sept. 16, down from 38 percent odds on July 30. Most traders expect policy makers to hold borrowing costs unchanged when they next meet Aug. 5.
U.S. gross domestic product increased at an annual rate of 1.9 percent in the second quarter, the Commerce Department reported yesterday. The median forecast of 79 economists surveyed by Bloomberg News was for an advance of 2.3 percent. The report also showed that a recession may have begun in the final three months of 2007, as GDP was revised to indicate a contraction in that period.
Jobless Claims
Initial jobless claims rose to 448,000 in the week ended July 26, from a revised 404,000 the prior week, the Labor Department said yesterday. The total number of initial filings last week was the highest since April 2003.
The U.S. currency touched a one-month high against the euro on July 30 after an ADP Employer Services report showed companies unexpectedly added jobs last month.
``The dollar's rally was built on a shaky foundation,'' said Stephen Malyon, co-head of currency strategy at Scotia Capital Inc. in Toronto. ``There's more downside risk to growth.''
U.S. non-farm payrolls dropped by 75,000 last month, following a decline of 62,000 in June, according to the median forecast of 79 economists surveyed by Bloomberg News. The Labor Department's report, which includes government hiring, is scheduled to be released at 8:30 a.m. in Washington.
Dollar in July
The greenback strengthened 1 percent against the euro and 1.6 percent versus the yen in July on speculation the U.S. growth slowdown is spreading to other developed nations. Reports last week showed German business confidence declined and European manufacturing and services contracted.
``The dollar bounce is nothing short of stunning,'' said Brian Dolan, chief currency strategist at FOREX.com, a unit of online currency trading firm Gain Capital in Bedminster, New Jersey. ``Economies elsewhere are showing fresh signs of deterioration.''
Turkey's lira advanced to a six-month high yesterday after the Constitutional Court's decision on July 30 to reject a call by prosecutors to ban the ruling party, which is seeking to introduce Islamic law. The lira climbed as much as 2.4 percent to 1.1555 per dollar, its strongest since Jan. 15. It gained 5.4 percent versus the dollar in July.
To contact the reporter on this story: Ye Xie in New York at yxie6@bloomberg.net
Last Updated: July 31, 2008 17:28 EDT
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Friday, July 18, 2008
YEN FALLS MOST VERSUS DOLLAR IN MORE THAN MONTH ON OIL, STOCKS
STOCKSRATES & BONDSCURRENCIESMUTUAL FUNDSETFsCOMMODITIESECONOMIC CALENDAR
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Yen Falls Most Versus Dollar in More Than Month on Oil, Stocks
By Bo Nielsen and Ye Xie
July 17 (Bloomberg) -- The yen dropped the most against the dollar in more than a month as a plunge in crude oil pushed stocks higher, encouraging investors to sell the currency to buy higher-yielding assets outside Japan.
The currency also fell versus the euro, South Africa's rand and Sweden's krona as JPMorgan Chase & Co.'s better-than- expected earnings eased concern credit market losses will cut into bank earnings. The dollar pared its decline against the euro as the price of crude oil decreased for a third day.
NOTE: OIL PRICE INCREASE GREATLY AFFECTS CURRENCY.
``People are flocking into the carry trade, and that has the dollar appreciating versus the yen,'' said Jeff Gladstein, global head of foreign-exchange trading at AIG Financial Products in Wilton, Connecticut. ``It looks like a correction is under way in oil.''
The yen fell 1.2 percent to 106.42 per dollar at 4:25 p.m. in New York, from 105.13 yesterday, when it touched 103.77, the strongest since May 27. It dropped 1.4 percent to 168.71 per euro, from 166.39 yesterday. The dollar dropped 0.2 percent to $1.5861 versus the euro, from $1.5827. It touched an all-time low of $1.6038 two days ago.
The price of crude oil for August delivery fell $5.15 to $129.45 a barrel, dropping $15 dollars in three days. The euro- exchange rate and oil have moved in the same direction 90 percent of the time in the past year, according to Bloomberg calculations based on the correlation of their value changes.
Weaker Yen
The yen dropped 2.1 percent to 14.097 against the rand and 2 percent to 17.838 versus Sweden's krona. In the carry trade, investors get funds in a country with low borrowing costs and buy assets where returns are higher. The Bank of Japan held its target lending rate at 0.5 percent this week, the lowest among major economies. The benchmark rates are 12 percent in South Africa and 4.5 percent in Sweden.
The Standard & Poor's 500 Index increased 1.1 percent on the drop in oil and JPMorgan's earnings. The S&P index lost 3.8 percent in the seven trading days ended July 15 and the dollar touched an all-time low versus the euro that day on bets a U.S. government plan to shore up Fannie Mae and Freddie Mac will fail to restore confidence in the two largest buyers of home loans.
``We were extremely bearish,'' said Alan Kabbani, senior currency trader at Wachovia Corp. in Charlotte, North Carolina. ``Now the market is taking some of that bearishness out and becoming a little more confident about the economy and the financial sector.''
JPMorgan Profit
Profit at JPMorgan, the largest U.S. bank by market value, fell 52 percent, less than analysts estimated, on mortgage- related writedowns and costs from the takeover of Bear Stearns Cos. Second-quarter net income of 54 cents a share compared with expectations for 44 cents in a survey of analysts by Bloomberg.
``While earnings are better than expected, it doesn't remove the fact that the dollar is under pressure and the problems with the financial sector are still present,'' said John McCarthy, director of currency trading at ING Financial Markets LLC in New York.
Merrill Lynch & Co., the third-biggest U.S. securities firm, reported its fourth straight quarterly loss as the firm compounded its credit-market writedowns. Global banks and securities firms have reported losses and writedowns of more than $420 billion related to subprime mortgages.
NOTE: MERRILL LYNCH & CO IS ONE OF THE MOST RESPECTED SECURITIES FIRMS.
The greenback weakened versus the euro on a sign of contraction in U.S. regional manufacturing. The Federal Reserve Bank of Philadelphia's general economic index was at minus 16.3 this month, compared with minus 17.1 in June, the bank reported today. Readings less than zero signal a decline. The median forecast of 56 economists surveyed by Bloomberg News was for a reading of minus 15.
Housing Report
Builders started work in June on the fewest single-family U.S. homes since 1991, the Commerce Department said. A change in New York City building codes spurred total starts, including condominiums and apartment buildings, to a four-month high.
Fed Chairman Ben S. Bernanke told the House Financial Services Committee yesterday that growth and inflation risks are increasing and the housing market is the ``central element'' of the crisis.
Yen sales by Japanese individual investors on the Tokyo Financial Exchange climbed to the highest level since August yesterday as gains in the currency made higher-yielding assets abroad cheaper.
Net short positions on the yen against seven major currencies, including the U.S. and Australian dollars, rose to 362,619 contracts among so-called mom-and-pop traders yesterday, the highest since Aug. 14, data showed. The contracts are denominated in 10,000 units of the foreign currency.
China will rely on the yuan's gains to combat inflation as slowing economic growth may prevent the central bank from raising borrowing costs, Goldman Sachs Group Inc. analysts wrote in a research note today.
The yuan has advanced more than 7 percent against the dollar this year, making it the best performer among Asia's most-active currencies. It fell 0.3 percent to 6.8289 today.
To contact the reporters on this story: Bo Nielsen in New York at bnielsen4@bloomberg.net; Ye Xie in New York at yxie6@bloomberg.net.
Last Updated: July 17, 2008 16:28 EDT
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Yen Falls Most Versus Dollar in More Than Month on Oil, Stocks
By Bo Nielsen and Ye Xie
July 17 (Bloomberg) -- The yen dropped the most against the dollar in more than a month as a plunge in crude oil pushed stocks higher, encouraging investors to sell the currency to buy higher-yielding assets outside Japan.
The currency also fell versus the euro, South Africa's rand and Sweden's krona as JPMorgan Chase & Co.'s better-than- expected earnings eased concern credit market losses will cut into bank earnings. The dollar pared its decline against the euro as the price of crude oil decreased for a third day.
NOTE: OIL PRICE INCREASE GREATLY AFFECTS CURRENCY.
``People are flocking into the carry trade, and that has the dollar appreciating versus the yen,'' said Jeff Gladstein, global head of foreign-exchange trading at AIG Financial Products in Wilton, Connecticut. ``It looks like a correction is under way in oil.''
The yen fell 1.2 percent to 106.42 per dollar at 4:25 p.m. in New York, from 105.13 yesterday, when it touched 103.77, the strongest since May 27. It dropped 1.4 percent to 168.71 per euro, from 166.39 yesterday. The dollar dropped 0.2 percent to $1.5861 versus the euro, from $1.5827. It touched an all-time low of $1.6038 two days ago.
The price of crude oil for August delivery fell $5.15 to $129.45 a barrel, dropping $15 dollars in three days. The euro- exchange rate and oil have moved in the same direction 90 percent of the time in the past year, according to Bloomberg calculations based on the correlation of their value changes.
Weaker Yen
The yen dropped 2.1 percent to 14.097 against the rand and 2 percent to 17.838 versus Sweden's krona. In the carry trade, investors get funds in a country with low borrowing costs and buy assets where returns are higher. The Bank of Japan held its target lending rate at 0.5 percent this week, the lowest among major economies. The benchmark rates are 12 percent in South Africa and 4.5 percent in Sweden.
The Standard & Poor's 500 Index increased 1.1 percent on the drop in oil and JPMorgan's earnings. The S&P index lost 3.8 percent in the seven trading days ended July 15 and the dollar touched an all-time low versus the euro that day on bets a U.S. government plan to shore up Fannie Mae and Freddie Mac will fail to restore confidence in the two largest buyers of home loans.
``We were extremely bearish,'' said Alan Kabbani, senior currency trader at Wachovia Corp. in Charlotte, North Carolina. ``Now the market is taking some of that bearishness out and becoming a little more confident about the economy and the financial sector.''
JPMorgan Profit
Profit at JPMorgan, the largest U.S. bank by market value, fell 52 percent, less than analysts estimated, on mortgage- related writedowns and costs from the takeover of Bear Stearns Cos. Second-quarter net income of 54 cents a share compared with expectations for 44 cents in a survey of analysts by Bloomberg.
``While earnings are better than expected, it doesn't remove the fact that the dollar is under pressure and the problems with the financial sector are still present,'' said John McCarthy, director of currency trading at ING Financial Markets LLC in New York.
Merrill Lynch & Co., the third-biggest U.S. securities firm, reported its fourth straight quarterly loss as the firm compounded its credit-market writedowns. Global banks and securities firms have reported losses and writedowns of more than $420 billion related to subprime mortgages.
NOTE: MERRILL LYNCH & CO IS ONE OF THE MOST RESPECTED SECURITIES FIRMS.
The greenback weakened versus the euro on a sign of contraction in U.S. regional manufacturing. The Federal Reserve Bank of Philadelphia's general economic index was at minus 16.3 this month, compared with minus 17.1 in June, the bank reported today. Readings less than zero signal a decline. The median forecast of 56 economists surveyed by Bloomberg News was for a reading of minus 15.
Housing Report
Builders started work in June on the fewest single-family U.S. homes since 1991, the Commerce Department said. A change in New York City building codes spurred total starts, including condominiums and apartment buildings, to a four-month high.
Fed Chairman Ben S. Bernanke told the House Financial Services Committee yesterday that growth and inflation risks are increasing and the housing market is the ``central element'' of the crisis.
Yen sales by Japanese individual investors on the Tokyo Financial Exchange climbed to the highest level since August yesterday as gains in the currency made higher-yielding assets abroad cheaper.
Net short positions on the yen against seven major currencies, including the U.S. and Australian dollars, rose to 362,619 contracts among so-called mom-and-pop traders yesterday, the highest since Aug. 14, data showed. The contracts are denominated in 10,000 units of the foreign currency.
China will rely on the yuan's gains to combat inflation as slowing economic growth may prevent the central bank from raising borrowing costs, Goldman Sachs Group Inc. analysts wrote in a research note today.
The yuan has advanced more than 7 percent against the dollar this year, making it the best performer among Asia's most-active currencies. It fell 0.3 percent to 6.8289 today.
To contact the reporters on this story: Bo Nielsen in New York at bnielsen4@bloomberg.net; Ye Xie in New York at yxie6@bloomberg.net.
Last Updated: July 17, 2008 16:28 EDT
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Thursday, July 17, 2008
FOREIGN CURRENCY TRADING IS AS RISKY AS IT GETS
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Foreign currency trading is as risky as it gets
Beware new products being pitched as way to counter dollar weakness
By JENNIFER WATERS
MarketWatch
July 17, 2008 5:27 p.m.
The steep drop in the value of the dollar has many individual investors flirting with dipping into foreign currency trading in order to defend themselves against the greenback's weakness.
They should forget about it. The risks are far too great for individual investors to try trading foreign currencies directly, financial experts warn. Indeed, it is a job best left to the big-name professionals who can offer indirect -- and safer -- ways to get in on the ebb and flow of the dollar.
NOTE: DOLLAR DEPRECIATION HAS CAUSED SEVERAL REACTIONS IN CURRENCY TRADING.
"Joe from Dubuque would be insane to play this game," said Dan Seiver, a finance professor at San Diego State University. "It's unlikely most individuals would have any idea what's going on all over the world 24 hours a day and it has the potential for an enormous amount of loss."
Investors and savers are likely to run into temptation, though, as financial institutions are pitching a myriad of new products and funds that make it easier to dabble in currencies.
EverBank World Markets, for example, offers traditional banking accounts and CDs in foreign currencies. An investor could buy $10,000 worth of, say, Aussie dollars and gain on the better interest rates in Australia.
Consider what's happened this year: The Aussie dollar is up 9% through the first six months. Investors who bought $10,000 worth of Aussie dollars in January when they were going for 87 cents to the U.S. dollar saw that rise to 95.5 cents, boosting the principal to 11,494.25 Aussie dollars. Add in half of the annual 5.24% interest rate and there's another 301.72 Aussie dollars for a total of 11,795.97.
Convert that account back to U.S. dollars today and that $10,000 investment has grown to $11,265.15 -- an 11% kick.
"Buying a currency is like buying a stock of a country," said Chuck Butler, president of EverBank World Markets. "Make sure to do research.... All the same types of things you do to buy stocks."
Volatile arena
While holding savings accounts or CDs in foreign currencies opens you to risk, trading currencies themselves is a real hot potato. Currency trading, which can be heavily leveraged, requires constant surveillance because of its sharp volatility.
What makes foreign exchange markets so scary is the huge leverage on these accounts, many at 30-to-1, with the brokerage firm fronting the bulk of the money. At that rate a $100,000 investment could give an investor access to $3 million worth of euros or yen.
That kind of leverage magnifies gains but can also result in steep losses.
"Currency markets are inefficient," said James Mitchell, director of the London-based fixed-income portfolio management for Russell Investments. "Investors must tread carefully because of their volatility."
Still, international diversification offers protection against a falling dollar. "If you're invested in equity markets it makes some sense to be globally diversified," Mitchell said.
Seiver recommends these three methods of hedging your bets in you think the dollar will continue to weaken: opening accounts in difference currencies, where allowed; investing in international mutual funds that hold only foreign shares (versus global funds that include U.S. holdings); or buying specialized mutual funds or exchange-traded funds that move inversely to the dollar. He holds the Pro Funds Falling U.S. Dollar Fund.
"It's the best way to indirectly have a play on the weak dollar," he said
Write to Jennifer Waters at jennifer.waters@dowjones.com
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Foreign currency trading is as risky as it gets
Beware new products being pitched as way to counter dollar weakness
By JENNIFER WATERS
MarketWatch
July 17, 2008 5:27 p.m.
The steep drop in the value of the dollar has many individual investors flirting with dipping into foreign currency trading in order to defend themselves against the greenback's weakness.
They should forget about it. The risks are far too great for individual investors to try trading foreign currencies directly, financial experts warn. Indeed, it is a job best left to the big-name professionals who can offer indirect -- and safer -- ways to get in on the ebb and flow of the dollar.
NOTE: DOLLAR DEPRECIATION HAS CAUSED SEVERAL REACTIONS IN CURRENCY TRADING.
"Joe from Dubuque would be insane to play this game," said Dan Seiver, a finance professor at San Diego State University. "It's unlikely most individuals would have any idea what's going on all over the world 24 hours a day and it has the potential for an enormous amount of loss."
Investors and savers are likely to run into temptation, though, as financial institutions are pitching a myriad of new products and funds that make it easier to dabble in currencies.
EverBank World Markets, for example, offers traditional banking accounts and CDs in foreign currencies. An investor could buy $10,000 worth of, say, Aussie dollars and gain on the better interest rates in Australia.
Consider what's happened this year: The Aussie dollar is up 9% through the first six months. Investors who bought $10,000 worth of Aussie dollars in January when they were going for 87 cents to the U.S. dollar saw that rise to 95.5 cents, boosting the principal to 11,494.25 Aussie dollars. Add in half of the annual 5.24% interest rate and there's another 301.72 Aussie dollars for a total of 11,795.97.
Convert that account back to U.S. dollars today and that $10,000 investment has grown to $11,265.15 -- an 11% kick.
"Buying a currency is like buying a stock of a country," said Chuck Butler, president of EverBank World Markets. "Make sure to do research.... All the same types of things you do to buy stocks."
Volatile arena
While holding savings accounts or CDs in foreign currencies opens you to risk, trading currencies themselves is a real hot potato. Currency trading, which can be heavily leveraged, requires constant surveillance because of its sharp volatility.
What makes foreign exchange markets so scary is the huge leverage on these accounts, many at 30-to-1, with the brokerage firm fronting the bulk of the money. At that rate a $100,000 investment could give an investor access to $3 million worth of euros or yen.
That kind of leverage magnifies gains but can also result in steep losses.
"Currency markets are inefficient," said James Mitchell, director of the London-based fixed-income portfolio management for Russell Investments. "Investors must tread carefully because of their volatility."
Still, international diversification offers protection against a falling dollar. "If you're invested in equity markets it makes some sense to be globally diversified," Mitchell said.
Seiver recommends these three methods of hedging your bets in you think the dollar will continue to weaken: opening accounts in difference currencies, where allowed; investing in international mutual funds that hold only foreign shares (versus global funds that include U.S. holdings); or buying specialized mutual funds or exchange-traded funds that move inversely to the dollar. He holds the Pro Funds Falling U.S. Dollar Fund.
"It's the best way to indirectly have a play on the weak dollar," he said
Write to Jennifer Waters at jennifer.waters@dowjones.com
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Wednesday, June 25, 2008
FOREX - DOLLAR STEADY IN AFTERNOON TRADE OF FOMC MEETING
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Thomson Financial News
Forex - Dollar steady in afternoon trade ahead of FOMC meeting, economic data
06.23.08, 2:35 AM ET
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HONG KONG (Thomson Financial) - The U.S. dollar was steady in afternoon trade in Asia on Monday as investors preferred to stay on the sidelines ahead of this week's rate-setting meeting of the Federal Reserve and a string of economic data from the world's largest economy.
'There is very little news that the market is able to digest at this stage. There is not much happening at the moment to move the currency market in any direction,' said David Mann, currency strategist at Standard Chartered (other-otc: SCBEF.PK - news - people ) Bank in Hong Kong.
'There was no U.S. data last Friday, so the market is pretty quiet today.'
The Federal Open Market Committee (FOMC) will meet on June 24-25 and is widely anticipated to keep key interest rates unchanged, pausing after seven rate cuts that started in September. Fed Chairman Ben Bernanke this month highlighted concerns about rising inflationary pressures stemming from record high oil prices and a weak dollar.
NOTE: FOMC PLAYS A VITAL ROLE IN FOREX INDUSTRY.
The United States is scheduled to release home sales data on June 25 and 26, consumer spending on June 27 and durable goods orders on June 25. The figures will give investors more clues about the state of the U.S. economy and whether the Fed will hike interest rates by the end of this year as Bernanke and other Fed officials had earlier suggested.
At 1:00 p.m. (0500 GMT), the euro was trading at $1.5607 from $1.5613 in Sydney this morning. The dollar was quoted at 107.40 yen from 107.34 yen.
'The market may not be moving much until the Fed's decision and the statement is out,' said Mann. 'After the Fed decision, which is the biggest even this week, investors will be watching out for the durable goods and spending data.'
Most analysts expect consumer spending to go up after the U.S. government's $50 billion tax rebate bonanza that gave Americans more money to shop or invest.
But Mann said the positive impact of the tax rebates on the economy will be temporary.
The post-FOMC meeting statement may highlight policymakers' continued worries about rising consumer prices, said Thomas Lam, senior treasury economist at United Overseas Bank (other-otc: UOVEY.PK - news - people ).
'In general, the accompanying June statement would likely evolve to indicate that the near-term growth outlook has become incrementally less lop-sided and that the current inflation environment could complicate the policy debate,' Lam said.
Since it began easing rates in September until its last meeting in April, the FOMC has lowered rates by a cumulative 325 basis points to 2 percent, the lowest since December 2004.
The rate cuts, which were made while the European Central Bank (ECB) has maintained its benchmark rate at a six-year high of 4 percent, caused the dollar to plunge to record lows against the euro and to multi-year lows versus the yen.
Standard Chartered's Mann does not expect the Fed to hike rates this year and is predicting that U.S. rates will be maintained for the rest of the year.
The ECB will likely hike its rate in July, he said.
'It's possible that there are more rate hikes (in the eurozone area) after July but that's not our central case scenario,' Mann said.
John Noonan, a senior foreign exchange analyst at Thomson IFR Markets, said the FOMC meeting is widely expected to produce a 'no-change' verdict, but the accompanying statement will be the key factor that will guide the currency market this week.
'If the FOMC statement is not hawkish or only signals soft tightening in the months to come and makes no mention of the U.S. dollar, it could be a tough week for the greenback especially with the ECB expected to hike 25 basis points when they meet on July 3,' he said.
NOTE: FOMC'S ANALYSIS IS VERY IMPORTANT TO FOREX INDUSTRY.
NAB Capital Markets head of currency strategy John Kyriakopoulos shared Noonan's and Mann's views.
'We think the Fed is done cutting rates and the next move will be a hike although perhaps not until next year, unless the recovery in U.S. growth proves stronger than expected,' said Kyriakopoulos.
If the Fed statement doesn't signal interest rates hikes in the months ahead, the dollar will decline, Kyriakopoulos said.
Hong Kong 1:00 p.m. (0500 GMT)
U.S. dollar
yen 107.40
Swiss franc 1.0360
Euro
U.S. dollar 1.5607
yen 167.66
Swiss franc 1.6176
pound 0.7911
Pound
U.S. dollar 1.9725
yen 211.88
Swiss franc 2.0438
Australian dollar
U.S. dollar 0.9555
pound 0.4843
yen 102.64
jun.ebias@thomsonreuters.com
.
je/ng
COPYRIGHT
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.
Neither the Subscriber nor Thomson Financial News warrants the completeness or accuracy of the Service or the suitability of the Service as a trading aid and neither accepts any liability for losses howsoever incurred. The content on this site, including news, quotes, data and other information, is provided by Thomson Financial News and its third party content providers for your personal information only, and neither Thomson Financial News nor its third party content providers shall be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon.
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Thomson Financial News
Forex - Dollar steady in afternoon trade ahead of FOMC meeting, economic data
06.23.08, 2:35 AM ET
Popular Videos
Inner Self to Stronger Investor
Small Business Health Care Woes
The Art of Internet Security
Stephen M. R. Covey's New Book
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The No-Tech Hacker
Job Hunting In A Downturn
How To Tap Lenders When Credit Is Tight
HONG KONG (Thomson Financial) - The U.S. dollar was steady in afternoon trade in Asia on Monday as investors preferred to stay on the sidelines ahead of this week's rate-setting meeting of the Federal Reserve and a string of economic data from the world's largest economy.
'There is very little news that the market is able to digest at this stage. There is not much happening at the moment to move the currency market in any direction,' said David Mann, currency strategist at Standard Chartered (other-otc: SCBEF.PK - news - people ) Bank in Hong Kong.
'There was no U.S. data last Friday, so the market is pretty quiet today.'
The Federal Open Market Committee (FOMC) will meet on June 24-25 and is widely anticipated to keep key interest rates unchanged, pausing after seven rate cuts that started in September. Fed Chairman Ben Bernanke this month highlighted concerns about rising inflationary pressures stemming from record high oil prices and a weak dollar.
NOTE: FOMC PLAYS A VITAL ROLE IN FOREX INDUSTRY.
The United States is scheduled to release home sales data on June 25 and 26, consumer spending on June 27 and durable goods orders on June 25. The figures will give investors more clues about the state of the U.S. economy and whether the Fed will hike interest rates by the end of this year as Bernanke and other Fed officials had earlier suggested.
At 1:00 p.m. (0500 GMT), the euro was trading at $1.5607 from $1.5613 in Sydney this morning. The dollar was quoted at 107.40 yen from 107.34 yen.
'The market may not be moving much until the Fed's decision and the statement is out,' said Mann. 'After the Fed decision, which is the biggest even this week, investors will be watching out for the durable goods and spending data.'
Most analysts expect consumer spending to go up after the U.S. government's $50 billion tax rebate bonanza that gave Americans more money to shop or invest.
But Mann said the positive impact of the tax rebates on the economy will be temporary.
The post-FOMC meeting statement may highlight policymakers' continued worries about rising consumer prices, said Thomas Lam, senior treasury economist at United Overseas Bank (other-otc: UOVEY.PK - news - people ).
'In general, the accompanying June statement would likely evolve to indicate that the near-term growth outlook has become incrementally less lop-sided and that the current inflation environment could complicate the policy debate,' Lam said.
Since it began easing rates in September until its last meeting in April, the FOMC has lowered rates by a cumulative 325 basis points to 2 percent, the lowest since December 2004.
The rate cuts, which were made while the European Central Bank (ECB) has maintained its benchmark rate at a six-year high of 4 percent, caused the dollar to plunge to record lows against the euro and to multi-year lows versus the yen.
Standard Chartered's Mann does not expect the Fed to hike rates this year and is predicting that U.S. rates will be maintained for the rest of the year.
The ECB will likely hike its rate in July, he said.
'It's possible that there are more rate hikes (in the eurozone area) after July but that's not our central case scenario,' Mann said.
John Noonan, a senior foreign exchange analyst at Thomson IFR Markets, said the FOMC meeting is widely expected to produce a 'no-change' verdict, but the accompanying statement will be the key factor that will guide the currency market this week.
'If the FOMC statement is not hawkish or only signals soft tightening in the months to come and makes no mention of the U.S. dollar, it could be a tough week for the greenback especially with the ECB expected to hike 25 basis points when they meet on July 3,' he said.
NOTE: FOMC'S ANALYSIS IS VERY IMPORTANT TO FOREX INDUSTRY.
NAB Capital Markets head of currency strategy John Kyriakopoulos shared Noonan's and Mann's views.
'We think the Fed is done cutting rates and the next move will be a hike although perhaps not until next year, unless the recovery in U.S. growth proves stronger than expected,' said Kyriakopoulos.
If the Fed statement doesn't signal interest rates hikes in the months ahead, the dollar will decline, Kyriakopoulos said.
Hong Kong 1:00 p.m. (0500 GMT)
U.S. dollar
yen 107.40
Swiss franc 1.0360
Euro
U.S. dollar 1.5607
yen 167.66
Swiss franc 1.6176
pound 0.7911
Pound
U.S. dollar 1.9725
yen 211.88
Swiss franc 2.0438
Australian dollar
U.S. dollar 0.9555
pound 0.4843
yen 102.64
jun.ebias@thomsonreuters.com
.
je/ng
COPYRIGHT
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.
Neither the Subscriber nor Thomson Financial News warrants the completeness or accuracy of the Service or the suitability of the Service as a trading aid and neither accepts any liability for losses howsoever incurred. The content on this site, including news, quotes, data and other information, is provided by Thomson Financial News and its third party content providers for your personal information only, and neither Thomson Financial News nor its third party content providers shall be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon.
Rate This Story Overall Rating
Reader Comments
[Add a comment to this entry]
Have a question? Ask our community of experts here.
Companies: SCBEF.PK | UOVEY.PK
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Attaché: Customize Forbes.com Now To Track This Author And Industry
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del.icio.us | Digg It! Digg It! | My Yahoo! | Share | RSS
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Energy Pipe Dreams For The Populace
Robert Lenzner
Obama and McCain are full of ideas for reducing energy costs. None will work.
* Candidates Need An Economic Clue
* A Cult Of Presidential Personality
* Delegates, Welcome To Lobbypalooza 2008
Brownout
Brownout What Privacy Policy?
What Privacy Policy? Vacationing On Loyalty
Vacationing On Loyalty Tanker Ruling: Boeing Wins, USAF Loses
Tanker Ruling: Boeing Wins, USAF Loses
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