Forex News

The strongest African economy may soon lose its position — at least so tells us its currency. South African rand appears to be one of the worst performing currency of 2008.

Today during the Asian trading session on Forex Australian dollar continued its bullish trend against the U.S. dollar and reached the new maximum value since 14th of November, 2007.

The rising interest rates difference between the U.S. and Poland stimulated the second week of Polish zloty’s growth against the U.S. dollar.

The U.S. dollar, even after a recovery from the two and a half year bottom against the Japanese yen, is remaining weak against this Asian currency as the investors worry about the current state of the U.S. economy.

The International Monetary Fund’s report, released this Friday, shows that the specific part of U.S. dollar in world’s foreign currency reserves fell significantly in 2007.

U.S. dollar has already entered the Christmas flat market zone and is trading on the very low volumes. During the Asian session today it managed to lose just 0.1% to Japanese yen as the latter gained from the good news from Merrill Lynch.

South African Reserve Bank decreased its foreign currency purchases volume almost by a half after the national currency felt significantly against the U.S. dollar in November. Depreciated rand kept country’s central bank from increasing their Forex reserves at the previous pace.

U.S. dollar is likely to replace Japanese yen on the carry trade arena as the short currency. According to the currency pairs yield analysis, Great Britain pound, Brazilian real and Hungarian forint combined made over 17% against dollar this year, while buying those currencies against yen yielded only 9%.