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!!!