Dollar Declines against Euro before Fed
June 20th, 2008
The U.S. dollar declined today against the euro, extending its weekly drop, as the chances for the Federal Reserve to increase the interest rates next week became more slim.
The U.S. dollar declined today against the euro, extending its weekly drop, as the chances for the Federal Reserve to increase the interest rates next week became more slim.
The Swiss National Bank decided to keep the country’s main interest rate at its 6-year highest value facing the risks of both a higher inflation rate and a slower economic growth.
The Indian rupee showed a weakening today at the Forex market as the speculations that the domestic companies will have to buy oil rose in the country.
The Chinese yuan extended its gain against the U.S. dollar today reaching the 20 percent appreciation since the end of the peg in 2005 as the new meetings of the U.S. and Chinese financial officials will be held soon.
The Japanese yen fell significantly today against the other major world currencies as the fast growth on the Asian and European stock markets attracted more participants to the carry trade activities.
The finance ministers from the Group of Eight nations confirmed their position in the favor of a stronger U.S. dollar at the meeting in Osaka, Japan today.
The Australian dollar fell to its one month low against the U.S. currency as the jobs dropped in May for the first time since October 2006 and the traders became more confident that the central bank won’t be raising interest rate more.
The U.S. dollar rose against euro, pound and yen today, rebounding from the yesterday drop, as the market strategists expect a good report on the U.S. retail sales to support Fed’s hawkish interest rate outlook.
The Chilean currency suffered a large daily drawdown today as the declining stock markets around the world pressed on the investors to sell their high-yielding assets including emerging economies’ currencies.