Alan's Forex Blog

• The Rupee fell below the 40 mark once again on account of capital outflows as the domestic stock market remained weak post the Union Budget. The USD/INR pair ended at 40.01 from 39.87 yesterday. • The 6-month and 1 year forward premium was at 0.22% and 0.48% as compared to 0.22% and 0.50% yesterday. • The Yen rose to a 3-year high against the dollar as rising levels of risk aversion, financial market stress and a gloomy outlook for the U.S economy led investors to unwind their carry

  1 minute with ForexSurvivor     (29 Feb US)         The telltale trademark that the trading environment has concluded in the last 10 days is that weakness of NZD is a fact, and we know that such conclusions have been read and heard by major media and online businesses, only to end up (not yet) with 8200 up to this writing from 7800 band. Now, NZD is back to vacuum and a Monthly/Weekly close above 8100 will create a buying pressure

Action Insight Mid-Day Report Dollar Hovers Near Record Low Dollar continues to hover near record low against Euro despite stronger than expected personal income and spending growth in Jan. though, some profit taking is seen in Aussie and Loonie. On the other hand, the Japanese yen remains firm, supported by carry trade unwinding. Personal income rose 0.3% in Jan, while spending rose 0.4%. Both are better than consensus of 0.2% rise. Regarding inflation, headline PCE was up from 3.6% yoy to

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Euro dollar hit a record high over $1.52 as Fed Chairman Bernanke indicated the central bank is still prepared to cut interest rates which are already at a three year low. He also went to say some smaller banks may not recover from the credit crisis and unemployment to increase. “This is the Bernanke shock, causing much faster dollar depreciation than expected,” said Michiyoshi Kato, a senior vice president of currency sales in Tokyo at Mizuho Corporate Bank Ltd., a unit of Japan’s

News and Events: The Dollar fell to an all-time low versus the Euro for a third straight day on Thursday after Federal Reserve Chairman Ben Bernanke warned some small US banks could fail and flagged further interest rate cuts. Market mood on Dollar also was soured by news the government’s second reading on 4Q US growth was unchanged from its advance estimate of 0.6%, whereas economists had forecast a slightly stronger result. A surprise big jump in initial weekly jobless claims also added to

Some of the pressure has been taken off the monoliners recently. The monoliners’ effort to satisfy the credit rating agencies Moody’s and S&P seems to be paying off – at least for now. MBIA, the largest monoliner, announced that it will separate the asset-backed securities guarantee business from its municipal…

No, we do not believe that he will do that at the monetary-policy meeting next week. But he is carefully considering whether he needs to pull out the drawer with the cartridge or the interestrate weapon. The growth scenario in Europe has become more uncertain and the risk that American…