Euro yet again hit a fresh record against the Yen

The Euro hit a fresh record high against the yen and gained 0.4% with having an all-time high of Y156.76. and gained 0.2% against the dollar. The Yen came under real pressure when the data revealed that the Japanese industrial production rose by less than the forecast thus enabling the Dollar to gain 0.2%. But later on the yen gained some ground and recouped some of its losses amidst the continuing speculation. But could not do well against neither the Euro nor the Dollar.
However, it is anticipated that the Yen may loose ground in the New Year too.

Let’s wait and watch how the Yen Market will play the game

European Euro giving a ride to Slovenia too!

This year (2006) is coming to an end. If we look back we are surprised to see that how quickly the days passed. New Year is nearing. Everybody is happy with their memories down the line. Every country welcomes this year, everybody will celebrate. But for Europeans this New Year is bringing some extra happiness. On this New Year they are going to celebrate the fifth anniversary of the launch of Euro notes and coins and they are also welcoming Slovenia, the tiny former Yugoslav republic as thirteenth member of their Euro zone.


This year in December, the European currency came of age by leaving behind the U.S dollar in terms of notes in circulation.


The Euro notes are in rapid growth as of present. What has driven such a rapid growth in Euro notes? Nobody has a clear answer for this question. After the 2002 launch, the rate of increase slowed, but remained above 10%. But slowly the rate started increasing in mid of 2003, and later picked up its speed and now as the U.S dollar is on off-side position, the Euro came to a leading position.

There is lot of demand for Euro notes in overseas. Tourists traveling outside the Euro zone are taking Euro notes with them and not bringing back so many with them. The Euro notes are gaining acceptance in large.

So Lets wish the Europeans Happy Celebrations!!!!!

U. S Stock Market made a good come-back

The U.S stocks got better on Tuesday as these stocks enjoyed a rebound after last few week’s broad losses. The maximum gains came during the last hour of trading. Analysts anticipate that the stocks will influence the investors who have experienced solid gains this year to purchase so as to increase their collections.

The holiday period helped the retailers counterbalance their losses which they suffered on account of weaker dollar. The S&P 500 gained 61.4 points on Tuesday while the NASDAQ Composite rose 12.33 points. From Thanksgiving Day to Christmas occasion the U.S holiday sales grew by 3% when compared to the sales of 2005.

The impact of the U.S dollar decline is on many. But if we take the stock market, if the impact is good for one person unfortunately it is bad for another. So, the dollar’s decline is not worrying many people in the stock market.

Does Christmas boom take the U.S dollar up?

Yesterday, the dollar under-went a minor change against the Euro at a flat rate of $1.3170 and against the Yen Y118.40 on account of the holiday period But the U.S dollar remains to be in the declining stage. The dollar is unable to make development despite the expectations from past weeks that the Federal Reserve is going to lower the interest rates. The dollar’s incompetence to cope up with the present environment is clear evidence that the U.S dollar is not doing well in the currency market and it also proves that the market participants who missed the thanksgiving sell-off are now selling the U.S currencies. Most of the investors are now directly opting for Euro since Euro is standing tall and many are buying Euros’ to make profit.

Amidst these many irregularities, if the Christmas fiesta helps the U.S dollar to cope-up, it really does some good to the U.S economy. But the thing is –Does this holiday period ahead help the dollar to cope-up?

In 2004 also, there was decline in the U.S dollar in the month of December, but nobody panicked because income investors can help themselves by putting part of the dollar decline on their side. If the dollar falls, dividends paid in euros, Canadian dollars or Mexican pesos will translate into a larger number of U.S. dollars. And if the dividends paid by companies that do business in those currencies are worth more to U.S. income investors, the stocks of those companies might rise, adding to the total return investors might reap from these stocks.

And at-last the dollar recovered in the middle of 2005.

So, Lets expect that the U.S dollar will become steady by middle of 2007.

Merry Christmas!!!!!

Euro becoming stronger day by day.

Euro is high from many weeks in the currency markets and yesterday is also no exception. Euro hit a fresh record against the yen owing to the sudden inflation which was more than expected. The Euro is becoming stronger because of its interest rates. The Euro zone interest rates are already high and the European central bank is looking forward to increase its Euro zone interest rates in the coming year.

Mr.Trichet in the European parliament said that the Euro zone inflation would likely to rise again in 2007. The dollar was extensively lower as concerns over slowing growth and organizational disparities in the U.S economy. These reasons have put an end to the U.S dollar’s profit and gave a profitable start to Sterling and Euro. A Currency Strategist at BNP Paribas stated that the dollar is expected to be weak till the end of this year and may continue for first half of New Year 2007. The Euro gained 0.1% against the dollar and Sterling also gained 0.1% against the dollar.Let’s hope that the U.S dollar will make some profits till the end of this year.

Euro driving home the Currency Market

The Euro which is in strong position in the currency market from many days is becoming the most strongest. The Euro zone interest rates at present are high and on account of their currency’s steadiness, the interest rates will be raised soon.

A currency researcher in New-York said that the Euro is making a big journey in the Asian Currencies Market and is expected to continue its journey for the next year too. Plus Sterling is also doing well in the Asian currency market.

The Euro braced up itself against the U.S Dollar and the Japanese Yen on Tuesday. The Euro increased by 0.6% against the dollar, and 0.5% against the Yen.

Though the dollar recovered itself from some losses by making some sharp retail sales but it couldn’t stand-by. Very soon it started to decline and is still continuing.

Let’s hope that this New Year will bring a New and Escalating look to the U.S dollar!!!!

The U.S Dollar is thinking whether to Rise or go down?

I heard that the U.S dollar was climbing up. So I thought, since the U.S dollar is on a hike, why not invest some money on it, and see what happens and to my surprise I earned some profits. With that profit I went for some merry Christmas shopping.

So friends, yesterday the dollar rose 0.4% against the sterling and 0.1% against the Euro. Like me, many investors enjoyed the profits on the U.S dollar. But that happiness did not remain for long . Since, the U.S dollar was again on the declining side.

And in-addition to that, according to BNP Paribas, it is anticipated that the Dollar may drop against the Euro through the end of this month due to a depression in housing data will slow the U.S economy. The U.S economy will be slower than the anticipated slowness in future. The housing data is still going to be on the deteriorating drift.

It is estimated that the U.S dollar will decline to $1.3280 per Euro by year-end. And it is also predicted that the Fed will reduce its standard rate to 4.5% in 2007 from 5.25% as its present rate.

Let’s see how the capricious markets will show their statistics at the end of this year---

The U.S dollar going on a Hike

At a point of time, I thought that dollar may not recover this year since there was some continuous decline in the U.S currency market. But my expectation had a sad end and I’m happy for such a good come-back that the U.S dollar has made.

The other day the U.S dollar rose because there were good amount of retail sales done and the latest is yesterday the unemployment data in U.S came-out well than the expectation. Whenever the U.S dollar is going-down, in some or the other way it is being supported.

Starting with a series from Fed’s decision, hike in retail sales to yesterday’s Unemployment data has given the U.S dollar little relief. The U.S dollar raised 0.4% against the Euro, 0.3%, 0.1% & 0.8% against the Sterling and the Yen and the Swiss franc respectively. Christmas boom will ensure the dollar to cope up soon.

Here’z some good news!!! Dollar rose

Since Christmas is nearing let’s share some good news. The dollar which was declining from past 3 weeks has suddenly risen making all of them happy. The U.S dollar rose yesterday by 0.5 percent against the Euro, 0.3 percent against the Pound, and 0.4 percent against the Yen.

The sole reason why the dollar rose is ---yesterday there was a sharp rise in the U.S retail sales, which saw the investors looking back for hard landing in the U.S economy. Since July, the sales have rebounded by one percent in November—which is the biggest increase till date.

On the other hand, the stocks like Dow Jones Industrial Average set a new record high of 12,368.61 shortly after the start of trading but closed at 0.02 per cent. The S&P 500 rose 0.1 per cent, while the Nasdaq Composite was 0.03 per cent higher.

In my opinion, the U.S dollar will rise more in the coming days because Christmas fiesta may do some magic….. Let’s see.

Fed’s decision brought no change

The dollar slipped against the Euro one more time when the Federal Reserve decided not to alter the interest rates in the U.S currency market because the Fed stated that the inflation is a threat to the U.S economy and there may be some risks related to inflation which may affect the dollar more in particular.

Owing to this fact, that the U.S dollar is slithering everyday most the people got used of listening to the dollar’s decline, so this news didn’t shock most of them. But some investors, who had a positive attitude towards the U.S currency market, were disappointed when they heard about the Fed’s decision.

The dollar was 0.2% low against the Euro yesterday. The stock market also did not do well yesterday. The S&P500 was low, the Dow Jones was low, the Nasdaq was also low. The U.S government report showed that the U.S trade deficit was $58.9bn in October is the lowest level since 14 months. But though the deficit became low showing a positive sign for the U.S trade market, but it failed to produce gains when the deficit was low.

Inflation remains as a major threat to U.S economy, so one cannot anticipate of Federal Reserve changing the interest rates as of now.

Dollar lives up against Yen

Yesterday, the Japanese Yen slithered against the dollar and the Euro after two weeks gap. When any currency is sliding, investors are following a new tactic. They are selling the low-yielding currencies to buy high-yielding assets. And Japan is no exception now. The investors in Japan are using the yen to buy high-yielding assets. The yen was down 0.4 per cent against the dollar and 0.8 per cent against the Euro.

Though dollar lived up against yen, but it is still continuing to be a major issue to talk about in and out of the U.S currency market. The senior Forex strategist at Royal Bank of Scotland said that the U.S currency market is now shakier than earlier.

The oil producing countries also are reducing their oil holdings with the U.S currency market due to its slithering position. At present, the traders who are bearing U.S currency are unlikely to get enough encouragement because U.S dollar may likely continue its downfall for some more days.

Weak dollar affects Oil Holdings

Since dollar continues to be in declining position, oil producing countries have reduced their business with the U.S currency market and shifted their way to the Euros, sterling’s and Yen’s which are making a big way in the currency markets.

The BIS report stated that the speculation in the U.S currency market will add more pressure to the already pressurized U.S currency market. In December the U.S dollar downfall is more. Owing to this fact, some countries started their oil holdings with other currencies rather than the U.S dollar. As a result the holdings of U.S dollar which were 67% came down gradually to 65%.

On the other hand, the other currencies like Euro have increased their oil holdings rapidly from 20% to 22%. Overall, Opec’s Dollar deposits fell by $5.3bn, while Euro and Yen deposits rose $2.8bn and $3.8bn, respectively.

In order to make the U.S dollar strong, the Fed must re-think on the interest rate policy and the global imbalances.

Dollar may see some more bad days ahead.

Since dollar is continuing to be a major issue to talk about, many strategists and traders feel that the U.S dollar would be weak for days ahead, a making way to slower economic growth in U.S. At this point, there is possibility that the Federal Reserve may decide to cut the interest rates.

In addition to weaker dollar, the unemployment report which stated that the unemployment-rate which inched higher is also leading the U.S economy to slow-moving side. The unemployment rate which was 4.4% in October rose to 4.5% till date. The U.S economy now at present is more dependent on job growth.

The Federal Reserve which meets next week to discuss the interest rates expects that the consumer spending will help the economy to re-stabilize itself. Let’s see whether the dollar will come up or the consumer spending will come go up before the Fed meets~~~

Dollar Looses its Attention

From the past few weeks, the U.S dollar has been focused by many markets as it was declining day by day. But now since, the European Central Bank has increased the interest to 3.5%, in this manner the Euro has made a big way. And now every other market is interested to catch news about the Euro, even, the foreign exchange market and as well the media is highlighting and focusing on the strong Euro.

It seems that the thanksgiving holiday which is boon to many people in the U.S has become a bane for the U.S currency market. From that holiday, the dollar is not doing well in the U.S currency market.

The dollar has fallen down to by 2.7% against the Euro from this holiday. On the whole in this year, the Euro has risen 12.8 per cent against the dollar, 10 per cent against the yen and 5.2 per cent on a trade-weighted basis, according to ECB figures.

The Euro is enjoying its raise against other currencies at present. Let’s see how the currency markets will be at the end of this year?

S&P 500 Set New Record

The U.S stock market was expanded with the S&P500 hitting six years high as the investors spotlighted the positives in the day’s mixed economy. The S&P index added 0.4 percent by closing its session at a six-year high.

The U.S treasuries market was tripped giving rise to the corresponding yields, while the U.S dollar was fighting against the other currencies. Oil prices ended with little change after fluctuating all through the day.

Asian Countries try to adjust ~~~~~~

Since the U.S dollar is still suffering major slides, the Asian Countries are a little worried. They’re unable to respond to the downfall of the U.S dollar. Subsequently, they are trying to cope with this sliding situation.


The Asian countries are trying to adjust themselves in the given situation; they are showing some positive attitude and seeing new ways to compromise with the U.S dollar. But at the same time however, any increase or decrease in signs of inflation could force the Asian countries to raise their interest rates and the value of their currencies as a result thereof.


Whenever there is any change in the U.S dollar, ultimately there will be change in the Asian markets since many of the Asian companies have their stake in the US market. So let’s hope that a positive change in the U.S dollar will give a positive face to the Asian markets as well.

Will U.S Dollar Fight Back?

This weekend the U.S dollar again slipped agitating financial markets and pushing the Euro and sterling strongly higher. The pound touched its highest level for 14 years against a beaten-up greenback while the Euro hit a series of 20-month peaks.


The U.S. dollar fell as low as $1.9847 against the sterling and to $1.3348 against the Euro last week before steadying. Over the week, the dollar lost 1.7 per cent against the Euro to $1.3322 and more than 2 per cent against sterling to $1.9798.


During the past two weeks, the U.S dollar has dropped 4 per cent against the Euro and 4.5 per cent against the sterling. The past two weeks’ fall have extended the dollar’s slide this year to about per cent against the Euro and 15 per cent against the pound.

Yielding to the risks to the dollar, the investors in US fixed income may want to consider broad and diversified exposure to non-dollar currencies.


If U.S dollar doesn’t fight back, then the U.S economy has to suffer a great loss. In my opinion, if the U.S dollar continues to fall, then there may be deficit in the economy