U.S Dollar has caught this month as its best….

The dollar headed for the biggest monthly gain against the Euro in almost a year on anticipation that the Federal Reserves will keep the interest rates at a six-year high as the economy is moving faster than expected. The Currency is also made of powerful preparations to beat the Yen. A Government report may show the world’s largest economy expanding at a very faster pace. This report may see the Fed becoming more confident.

Dollar’s Trading:

The dollar traded at $1.2965 per Euro late yesterday and has risen to 1.8% this month. And against the Yen it traded at 121.51Y. The dollar has risen to 4% against the yen since from Dec 12^th, 2006. Out of 16 most-active currencies, the dollar has gained against 14 currencies including the Swiss Franc and the Australian Dollar.

Dollar’s Monthly-Performance:

This month the dollar rose to two-month high against the Swiss Franc and one-month high against the Australian dollar. Japan’s standard is now lowest among the industrialized nations, encouraging the so-called carry trade where the investors borrowing low-yielding currencies to invest and buy the high-yielding currencies and assets. The yen has become the target for every investor since its yield is low…

The U.S.D Vs The Yen

Yesterday, the U.S dollar has hit a four-year high against the Yen. The U.S economic data has given full strength to the dollar in the currency market. The dollar is continuing its gains from many days against the Yen. These days the news from United States is very commanding and too positive. There were beliefs in the past that the Federal Reserve may loosen the U.S monetary policy. But once the U.S.D is doing well, all beliefs came to an end.

This Week Federal Reserve is going to hold a Policy-Setting Meeting to discuss regarding the monetary policy. It is said that they are going to analyze the manufacturing data and the Employment data in-order to review their monetary policy.

On the other hand, the Japanese Economic data and the retail sales data are very disappointing. The data didn’t allow anybody to assume that the yen may recover in the future. The Economic status in Japan is very weak. The Yen fell to almost four-year down to the dollar. And it also fell against the Euro by 0.3%.

Every investor is looking for a carry trade against the yen and buying high-yielding currencies by selling the yen since at present the yen is the one and only low-yielding currency.

Let’s see whether the policy-setting meeting by the Federal Reserve turns out to a boon or bane to the poor-yen.

The Yen and the Sterling are in Limelight

Hi everybody!!

Its almost two-days that I haven’t being working on the blog-And I was missing something then I thought its nothing but the blog I'm missing.

Well in these two days some changes have taken place in the world currency market…and those changes are unexpected ones….

The Big change is the Yen's journey on a profitable road. The Yen which was struck in the world currency market traffic earlier in the week is now taking active part against its rival currencies.

The first one to hit by the Yen was the Australian dollar. The Australian dollar was 1.9% down against the yen. The Australian CPI inflation data came weaker than expected. The data was so weaker because there were assumptions that the Reserve bank of Australia would lift its interest rates next month. The Next big-hit of yen was against the Euro. The Euro was down by 0.3% against the Yen and the Pound followed the hit-list and it fell by 0.5% against the Yen.

The Sterling advanced initially in this week by hitting a record of 14-year high against the dollar and four-year high against the Euro.

Desperate Times for the Yen

The Yen which has gone up yesterday is again down drastically. The yen which is now set for a third-week of losses after the Government report revealed that a consumer prices rose less than expected signaling the fellow traders to cut bets on Bank of Japan Interest-rate increase next month. The Yen dropped hugely against the top currencies like the Euro, the Dollar and the Sterling. Out of 16-Active currencies, the Yen dropped against 13 currencies which includes the British Pound and the Australian Dollar. This huge drop is because the Japanese Government is going to keep pressure on policy makers not to raise borrowing costs.

The Japanese Currency is in such a position that every other trader wants to sell the Yen and buy High-Yielding currencies. Japanese Currency today to be the weakest since almost from four years against the U.S dollar and a record low against the Euro. The Yen fell to 238.68 against the British Pound and 94.04 against the Australian Dollar.

Yen’s position isn’t well these days!!---What is stored for the Yen in Future Let’s See?

Sterling Fall helps the Yen!!!

Yesterday, the BoE’s news has thrown a split-decision and gave a fresh blow to the sterling. The sterling went down by 0.8% against the dollar and 0.2% against the Euro and 1.3% against the yen.

Yesterday, the Japanese currency market was fully energized. The Yen market had full scope to recover itself from the earlier losses. Previously, the Yen was under real pressure. It had undergone a lot of stress after the Bank of Japan’s decision regarding the interest rates holding on to 0.25%. The investors were selling the yen since it was low-yielding currency to buy the high-yielding currencies like the Euro and the dollar. The yen started its recovery with the Australian dollar. The Yen picked up against the Aussie dollar by 1.8% and the credit goes to the weak Australian CPI inflation data.

The yen rose 1.1 per the Euro and was up 0.5 per cent to Y121.05 against the dollar. The he dollar rose to 0.5 per cent to 1.2960 against the Euro.

Meanwhile the low-yielding Swiss franc, which is also used as a funding currency in carry trades, came under pressure. The Swiss franc dropped 1.6 per cent to Y96.78 against the yen and hit an eight-year low of SFr1.6229 against the Euro.

Now it’s the turn of Swiss franc to take chance to recover.

The Grand debacle of the Yen & its story!!!!!

As promised I’m back with the Yen’s debacle story!!!!!

The Yen was not performing well in the World Market since the last year ‘2006 and its bad performance is still on. The downfall became more powerful in the month of December’06. The Yen lost its ground against the Euro by 0.5%. At that time the Euro braced up itself against the Japanese Yen. The Japanese market was really tensed at that time and before they thought of gaining stability, again the Yen has slithered. And this time, it slithered to an all-time high to Y156.76 against the Euro. The Yen came under real pressure when the data from the Japanese production house revealed that the industrial production rose by less than the forecast thus enabled the Euro to go up.

Keeping in view that the yen is losing its footing; some Financial Analysts anticipated that the yen will continue to loose its balance in New Year too. However may be anticipator, HATS OFF TO HIM. His anticipation came true.

Time and Tide never waits for anybody. So our much-awaited New Year was in. Every Countryman welcomed this New Year with their smiling faces. Everybody will think to give out their Fantastic performance. And World markets are no exception. But the Japanese Market didn’t get that chance. Before the yen market made some preparations for its raise, the U.S dollar has already made some outstanding preparations against the Yen and the Yen again fell by 0.7% against the U.S dollar, making it an all-time high.

Did the debacle stop? No, it didn’t. Now it was the turn of Sterling. New Year surprised the Sterling by some sudden increase in its interest rates. Since, Sterling is in leading position, it rose 0.5% against the Yen, making the yen again fall-back. And four days back, the Yen fell 0.3% against the dollar and 0.2% against the Euro.

And on 19^th this month, everybody in Japan and fellow investors in other countries were expecting that the outcome of the Central bank Policy Setting meeting will be positive and will change its interest rates. The anticipation disappointed many. The Central Bank didn’t change its interest rates, it held on the same old interest rates. This decision made the Yen again fall against its rival currencies like the Euro and the U.S dollar.

Now its turn that we speak about the latest update, i.e., yesterday 21st Jan,07 once again the Yen lost its ground. The Japanese currency fell to its lowest level since March 2003 against the dollar, a nine-year trough against sterling and came within touching distance of a fresh all-time low against the Euro. At this point the fellow traders are buying high-yielding currencies by selling the low-yielding currencies like the Yen.

Over the week, the yen fell 0.9 per cent to Y121.40 against the dollar, 1.7 per cent to Y239.50 against sterling and 1.1 per cent to Y157.10 against the Euro.

Its said that all’s well that ends well. But here it might not end well.

Oh No!! Yen is down ~~

Oh God!! When I woke up today I was expecting the Bank of Japan will alter its interest rates. But alas!!! The Bank of Japan hasn’t changed its interest rates and is holding the same interest rates. This adamant interest rate has taken the yen to fall to its lowest level in four years against the U. S Dollar. The central Bank policy board voted to 3 out of 6 in favor of keeping the Japanese interest rates at 0.25%. Prior to this week, the central bank thought of that it would continue to monitor the consumer prices and personal consumption before deciding whether to raise the Japanese interest rates or not.

There were suggestions that the BoJ had bowed to political pressure from the Japanese government, which was worried that a rate rise could harm the country’s economic recovery. Previously this week the yen has dropped to a thirteen-month low against the dollar and lost its ground against the Euro.

The Swiss franc fell 0.2 per cent to SFr1.2500 against the Euro and dropped 0.3 per cent against sterling. The dollar rose against the Euro after data showed that the US housing starts rose by more than expected in December and US CPI inflation accelerated at its fastest pace for eight months. The dollar climbed to a high of $1.2898 against the single currency. But its gains were wiped out as a rumor swept the market that a US warship had been hit by an Iranian missile in the Arabian Gulf. But the U.S officials denied the rumors.

Well rumors always remain as rumors and never become the facts. But what is the reason behind the Yen’s decline. Let’s know it on Monday

Employment data took the Sterling Up!!!!!!

Yesterday, the Pound rose to a two-and-a-half year high against the European Euro and enhanced against the U.S dollar and the Japanese Yen in the midst of continued anticipations of further monetary tapering in the United Kingdom. And this happened when the employment data came in very positively.

The unemployment data in November’2006 showed lower than the expected figures being the largest drop in almost 2 years. Yesterday, by mid-afternoon in New York, the pound rose to 0.3% against the Euro, 0.4% against the dollar and 0.2% against the yen respectively. The Japanese yen’s performance is terribly bad and has dropped to a thirteen-month low against the dollar and slipped against the Euro. Investors in Japan think that the BOJ may raise the interest rates, but the BOJ has not yet decided. It is said that this year is going to a year of Surprises in the financial markets and this statement is proved when the sterling was surprised with the raise in the interest rates.

Let’s see how many surprises more we are going to see in the financial markets in future.

Oh Yen!!! Will you recover?

I have been asking people is Japanese Yen doing well in the Currency Market. And believe me out of 100%, 90% people feel that the Yen is not doing well in the world market. So, I thought why not look back and find out the reason as to why the Yen is not doing well?

I have gone through the earlier data relating to the Yen. And I found that the Yen has been losing its ground against the Euro, the Sterling and the Dollar too. When we look back to the previous year, in November ’06 the Yen has fallen against Euro making it an all-time high to the Euro. And in December too the Yen fell drastically against the dollar and the Euro. And investors in Japan at that time were using the Yen to buy high-yielding assets. The Yen was down by 0.4% against the Dollar and 0.8% against the Euro.

And in this New Year too, the Yen is not recovering from its downfall. Yesterday, the Yen dropped to a thirteen-month low against the dollar and lost its ground against the Euro. A report from the Bank of Japan suggested that they are not going to raise the interest rates. A BOJ analyst said that we should continue to monitor the consumer prices and personal consumption, before deciding whether to raise the interest rates or not.

Yesterday, the Yen fell 0.3% against the dollar and 0.2% against the Euro. But it was flat against the pound at Y236.60.

Sterling fell 0.3 per cent against the dollar and dropped 0.2 per cent against the Euro. The Euro rose to a high of $1.2990 against the dollar. But at the end of the day the Dollar made some quick gains against the Yen and the Sterling.

Surprised Sterling is spreading its Magic!!!

Sterling is moving forward with its gains. Last week’s surprise hike in the interest rates made the sterling not to look back, its just moving in a very positive way. A Financial Analyst at Capital Economics said the rising trend in output price inflation supported the Bank of England’s view that companies were widening their margins in order to recover the profits lost to rising energy prices last year. The rising trend in price inflation is helping the Bank of England to recoup its industrial losses. By mid-afternoon in New York yesterday, the pound climbed 0.2% against the Euro and 0.5% against the Yen and also 0.3% against the dollar.

Is the U.S dollar feeble?

The U.S dollar is again reverting to its earlier position by slithering. Yesterday, the European Euro gained 0.2% against the dollar. But it is expected that since yesterday was Martin Luther King holiday, the trade in the U.S market was thin. It may be anticipated that today the U.S dollar may play the game safe with some profits at its back. In the meantime, the Japanese Yen fell against the Euro. And it also fell against the U.S dollar making it a nearly thirteen-month low. The U.S dollar is not weak, it’s strong and it will be in the leading position but needs some serious time.

Let’s all hope for the betterment of every country and every currency!!!

U.S Stock market is exploding

On top seeing the great boom in the U.S currency market, we also can see some more interesting booms in the U.S stock market too. The U.S tock market rose to almost three months high this week on expectations that the technology companies will give out some profits. The foremost companies like the Apple Inc and Microsoft are going to introduce their new products into the market and this new release of their products will influence the prompt consumers and businesses to spend more.

Apple:

Apple, whose iPod dominates the market for music players, climbed to a record after unveiling its iPhone mobile phone.

Microsoft:

Microsoft, which will start selling its Windows Vista software to consumers this month, jumped after strategists at UBS AG and Bear Stearns & Co. upgraded their recommendations on the industry.

Stocks:

Stocks were no exception for boosting. They also got a boost as oil prices slumped to a 19-month low. The Dow average added 1.3 percent to a record of 12,556.08. The NASDAQ Composite Index had the biggest climb of the three gauges with a 2.8 percent increase to 2502.82. That's a level not seen since February 2001.

Sterling was taken to Surprise!!!!!

The Bank of England has announced a surprise rise in the interest rates by a quarter of a point to 5.25%. This decision by the Bank of England has taken the Central Bank to a great surprise. Sterling powered to a six-a half year high yesterday after revealing the surprise. The Bank of England’s effective sterling trade-weighted exchange rate index rose to 105.20, its highest level since May’2000. The Sterling gained to a one-week high against the dollar by $1.9538. The pound rose to 0.8% to an 18-month high against the Euro to 0.6640 and 1.3% against the yen.

The Euro slipped against the dollar at 0.3% to $1.2895 because the European Central Bank left the Euro-zone unchanged at 3.5%. But the Japanese Yen continued to fall 0.7% against the dollar making it the lowest level since December’05 and lost 0.4% against the Euro. The depression trend in the Yen is because the Japanese economic data is very weak when compared with other countries economic data.

All in all, the surprise was very thrilling.

Stability in U.S trade deficit!!!!

The trade deficit in October’06 was $58.8bn and this figure caused some tension in the U.S economy market. But soon in the next month the trade deficit shrunk to $58.2bn in November’06 showing some improvement in the U.S trade market. The improvement was mainly due to lower oil prices, and rise in U.S exports. But whatever may be the reason, the trade deficit is shriveling and boosting up the dollar from angst. Improving the trade position in the U.S may heighten up the GDP growth by 1% point.

Yesterday, the dollar gained 0.4% against the Euro and 0.2% against the Turkish Lira. And it also rose 0.4% against the Indonesia’s Rupaiah. The trade deficits which were very massive in U.S earlier some two-to-three months back are now stabilizing and the dollar is enjoying some firmer tone now against its major trading participants. On the other hand, the Yen is bouncing back against the Euro by dipping it by 0.2%.

The U.S dollar back in action!!!

The U.S dollar is leading the currency market leaving behind all the world currencies. The Euro which was making a big way earlier this month is at once silent in the foreign market. At the moment, it is the U.S dollar which is escalating. The dollar rose to almost seven weeks high against the Euro on speculation that the Fed may rethink about the inflation that has yet to be domesticated. Apart from showing its solidity to the Euro the dollar showed to the Yen too. The dollar rose to $1.294 per Euro yesterday making it the strongest since Nov’24. The Fed’s lending rate between the banks is at 5.25 since June and the BOJ’s key rate is 0.25% and the European Central Bank’s benchmark is 3.5%. So the traders are waiting for the Fed to meet next on January 31^st’07 to lower the rates in March down from 100% last month.

Apart from all these, the trade deficit in U.S is a cause of worry. The trade deficit widened to $6o billion in November’06 when compared to $58.9 billion in the previous month (i.e October’06). The Head at the Foreign exchange trading at Sumitomo said that the people who have recently bought the U.S dollar may have to unwind their trades.

Hoping that people who bought the U.S dollar recently will be at positive stride.

The U.S dollar’s speculation Magic!!!

I thought the U.S dollar will show its magic in New Year. And so it showed. It challenged the Thanksgiving Day losses and recouped itself and stood stable against the top currencies like the Euro and the Sterling till yesterday. But I didn’t think that it will start speculating so early.

So, it is understood that what we think may not happen always, that is the specialty of the world markets.

The U.S dollar was ruling the foreign currency market starting from third day of the New Year till yesterday. But suddenly yesterday by mid-afternoon the U.S dollar slipped 0.1% and 0.2% against the Euro and the Sterling respectively. But thank god it gained 0.1% high against the Swiss Franc. Nevertheless to say that the U.S dollar stood flat against the Yen at Y118.60.

On the other hand, the dollar again speculated on a positive note. Later at the end of the day, the dollar held close to six-week high against both the Euro and the Sterling. And the credit will obviously go to the U.S employment data which showed more positive approach than anticipated. A Financial Analyst at Barclay’s capital said that the U.S rates will not be cut at all in next 6 months or so and this decision would be consistent for the dollar to be strengthened over the next couple of months. And it also heard that the Fifth Largest Oil Producer in the Arabian Gulf, Oman supported the U.S currency and stated it kept most of its five billions of its central bank reserves in U.S currency (i.e., dollar) rather than going for the European Euro.

A currency Economist said that the growth in U.S economic prospects may prove a down-side risk to the Japanese market. However, it is expected that the Japanese market will be cautious against the U.S dollar in future.

World Markets are always capricious!! We don’t know what will happen the next moment. We know only to wait and watch and later on admit the output.

So let’s see how the world markets will play their game.

The U.S dollar going on hike!!!!

After New Year, the dollar is making a big way in the world currency market. The dollar rose 0.6% against the Euro, and 0.7% against the pound and 0.4% against the Swiss Franc. The manufacturing data in the U.S showed fantastic progress and in addition to that the U.S employment data also beat the forecasts and came out in a huge way giving a good path to the U.S dollar. First New Year week came to an end the dollar climbed 1.4% against the Euro, 1.5% against the pound, and 1.6% against the Swiss Franc. The yen changed a bit against the dollar and stood y118.80. Let’s hope the U.S dollar continues this hike

The U.S Dollar is on its way to recover its Lion's Share

Day before yesterday the U.S dollar has relieved many from anxieties and worries. On the second day too (i.e. yesterday) it went up. I think the U.S dollar’s New Year resolution is to make people happy by moving in an upward trend. From past two days the U.S dollar is going up. Yesterday, the dollar rose 0.5% against the Euro and 0.4% both against the Sterling and the Swiss Franc.

Financial Analysts said that the short-term investors who stepped back owing to the dollar’s weak position are now stepping ahead to buy back the U.S currency. After a holiday, the U.S dollar is in high spirits. The previous week the dollar’s pattern was very vulnerable and many thought to sell-off the dollar at the end of the year2006. But in this New Year the dollar recouped itself and it’s on the way to recover its lion’s share. Let’s see whether it will get back its share or not.

Hey!!!! Dollar is up

The U.S dollar’s position was not fine from past many days. It has been fluctuating on a negative side. Many people and especially the people who were related with the U.S dollar were worried and were wishing & waiting for the U.S Dollar to go up. And at-last their wish yielded a fruit. The U.S
dollar took a good dive and went up yesterday making all the people exuberant. After many days in slope, the U.S dollar went up. And the credit goes to the manufacturing data which showed a positive approach and made the U.S dollar to a hard-land in the world’s largest economy. There has been tremendous growth and stabilization in housing data and auto sectors from December ’06 when compared to Nov’06. It is expected that this stabilization at this point of time may put an end to the U.S slow-down.

All's Well That Ends Well, so the dollar rose 0.8% high against the Euro, 1.1% against the Sterling. And it also rose 0.7% against the Yen making it a record of two-month high.

Wishing that this hike will be stable!!! Let’s see

New Year’s magic did not work for the U.S Dollar!!!

New Year is a year which brings in new challenges, new opportunities and above all New Hopes. So I was hopeful that this New Year will change the U.S dollar’s position by taking the U.S dollar up. But my hope didn’t work out. The U.S dollar again slithered. And as we all know that from past few days Euro is hitting the market, now also the Euro is ruling the world markets.

Yesterday Japanese markets were enjoying a holiday and the U.S financial markets were observing national mourning for their former president so the trading conditions were light. And it was expected that the foreign exchange market may not work well. But to everybody’s surprise the Foreign Exchange market made an explicit move. Both the currencies the Euro and the Sterling rose against the dollar though their manufacturing data showed that it was weaker than expected. The Euro and Sterling rose 0.6% & 0.7% respectively against the dollar.

In 2003 also, the dollar’s position was also weak. But by middle of 2004 it again made progress. So let's expect that by middle of 2007, the Dollar will make a way to progress

The U.S Stock Market gained its best in 2006 in contrast to 2003

The U.S stock market rose last week enlarging a best gain since 2003. 2006 was a good year for the U.S stock market. The Dow Jones Industrial average went to 12,500 for the first time. The S&P 500 rose 0.5% to 1418.30 for the first time since 1990. The NASDAQ composite Index which gets 41% from computer-based shares increased to 0.6%. On the whole for 2006, the Dow Jones Average climbed 16 percent, being the biggest gain among the three-major U.S gauges. The S& P 500 was standing next with a 14 percent jump and while the NASDAQ had the smallest rise by 9.5%.

Though the Stock market had done well and it is expected to do well in future, but when it’s the case of Currency market, the currency market in U.S is still a cause of worry. The dollar fell again owing to the data that showed that the U.S manufacturing growth stalled and job creation slowed. . A report may show that the U.S manufacturing didn’t expand till last month after reducing for the first time since April 2003. The dollar fell to 118.74 against the Yen. And it also dropped against the Euro to $1.3237 to $1.3174. The Stock market trading average may be about 50% below today as the U.S financial markets are observing a national day of mourning for former President Gerald R.Ford