Yen Weakens despite Falling Stocks and Weak Data
Japanese yen fell today even after economic data showed that recession in Europe and the U.S. may deepen. Investors sold the yen in favor of higher-yielding currencies as the recent efforts from governments and central banks around the world calmed concerns and reduced risks in financial markets.
Read more...Pound Falls on BOE Minutes and Joblosses
Monetary Policy Committee were unanimous when they voted for 100 basis points rate cut at their latest meeting, the minutes from the Bank of England (BOE) showed today. The policy makers considered the need for even
Read more...Dollar Falls as FOMC Cut Target Rate to Zero
Federal Open Market Committee (FOMC) cut its target for the federal funds rate late on Tuesday, to a range of zero to 0.25 percent. With virtually zero interest rate, the action would be followed by unconventional measures to stimulate the economy further.
Read more...Yen Rises as Auto Bailout Failure Reduces Risk Appetite
A 14 billion dollar rescue loan for the automakers was rejected by the Senate last night, leaving the future of the U.S. auto industry in question. The House passed the plan on Wednesday but the Senate was also needed to pass a similar version of the legislation.
Read more...SNB Cut Interest Rate and Dollar Weakens on Auto Bailout Uncertainty
Swiss National Bank (SNB) cut its benchmark interest rate to 0.5 percent today. The 50 basis points reduction was in line with analysts' estimates. The bank sees improvement in inflation outlook and expects 0.5 to 1.0 percent negative growth for the next year.
Read more...Job Losses Accelerate Yen Falls on Stocks Rally
Job losses accelerated in November at the fastest pace in 34 years, Labor Department reported on Friday. Businesses in the U.S. continue to fire workers trying to cut expenses in the worst economic downturn in decades.
Read more...ECB and BOE Lower Interest Rates to the Historical Levels
Central banks in Europe lowered their benchmark interest rates. European Central Bank cut rate by 75 basis points to 2.50 percent, the most aggressive move in ten years history of the bank. The Bank of England also voted to lower the bank rate by 100 basis points to 2.00 percent,
Read more...Australia Cuts Rate Other Data Limit the Reaction
Reserve Bank of Australia cut the cash rate by 100 basis points to 4.25 percent. While the reduction was more than analysts' estimates, earlier reports on the current account and retail sales came better than expected, helped Australian dollar to limit the negative reaction.
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