Exotic Currencies

Credit problems in the US have been the source of much turmoil throughout the global markets in the past few months. Tuesday was good for the US dollar, which held strong against both the yen and the euro. However, forthcoming economic reports from the US may or may not tip the scales. According to Reuters:

"The panic is almost over, but the market has lost its direction and is
waiting for more news, especially any good news," said Kikuko Takeda, a
currency strategist at Bank of Tokyo-Mitsubishi UFJ.

Read more: Dollar drifts as U.S. data awaited for direction

Original post by Amy Cottrell and software by Elliott Back

Reports from Tokyo indicate that the US dollar is holding steady in Asia as of Monday morning. After receiving promising reports from the west, recent fears about the US credit problems have alleviated and risky trades have resumed in Asia. Since then, the dollar has strengthened considerably. The Philippine Star reports:

The better US economic news slightly pared back market expectations
that the US Federal Reserve will cut its benchmark interest rate next
month, dealers said.

Read more:Dollar steady in Asian trade

Original post by Amy Cottrell and software by Elliott Back

Reports from Tokyo indicate that the US dollar is holding steady in Asia as of Monday morning. After receiving promising reports from the west, recent fears about the US credit problems have alleviated and risky trades have resumed in Asia. Since then, the dollar has strengthened considerably. The Philippine Star reports:

The better US economic news slightly pared back market expectations
that the US Federal Reserve will cut its benchmark interest rate next
month, dealers said.

Read more:Dollar steady in Asian trade

Original post by Amy Cottrell and software by Elliott Back

Although recent credit problems in the US have led to a global market crisis, Singapore remains largely unaffected. The Singapore dollar was weakened briefly on Thursday, only to bounce back again by Friday. As for the foreign exchange markets, Singapore has been watching the unfolding drama with close observation. This is, perhaps, the reason for the city-state’s stable economy. Reports Forbes:

The MAS [Monetary Authority of Singapore] said it ‘has not needed to conduct any extraordinary operations in the markets. However, we stand ready to act if the situation warrants.’

Read more: Singapore’s forex, money markets orderly despite global slump, says MAS

Original post by Amy Cottrell and software by Elliott Back

The Norwegian Krone is certainly not a very popular currency
among participants in the forex markets.  Nonetheless, the currency has enjoyed a strong
year, having moved away from clinging to the coattails of the Euro and has actually
surpassed the common currency by a considerable margin.  In fact, the Krone recently touched a 10-month
high against the Euro, and a multi-year high against the USD, spurred on by a
rate increase by the Central Bank of Norway.  In addition, the consensus among analysts is
that the Central Bank will hike rates several more times over the next year,
bringing the benchmark rate to 5.75% by 2008.  Surely, the most opportunistic among us has
already begun searching for a broker that facilitates trading in Krone!

Read More: Norwegian krone jumps as central bank hikes
interest rates

Original post by Jimmy Atkinson and software by Elliott Back

The exchange rate between Zimbabwe’s local currency and the US Dollar is currently 110 Billion:1, give or take a few zeroes. This complete collapse in confidence surrounding the currency is redolent of post-war Germany, when a wheelbarrow full of Deutsch Mark was required to buy a loaf of bread. The same hyperinflation, estimated at 100,000,000% on an annualized basis, has gripped Zimbabwe, causing prices to skyrocket and the local currency to plummet. As a result, the Central Bank has announced a plan to redenominate the currency by removing 10 zeroes from notes currently in circulation. Analysts agree, however, that this move is merely symbolic, and unless the Central Bank comes up with a comprehensive plan to fight inflation, they may have to repeat the re-denomination process later this year. Voice of America News reports:

Economist John Robertson agreed the zeros will soon be back on notes without a concerted effort to tackle the root causes of hyperinflation. Journalist Jonah Nyoni commented that what needs to be removed is not the zeroes from the currency but the leadership of the country.

Read More: Zimbabwe’s Central Bank Snips 10 Zeros In Currency Redenomination

Original post by Jimmy Atkinson and software by Elliott Back