Euro Rises Against Yen as German Confidence Beats Estimates

By Ye Xie and Oliver Biggadike
Aug. 18 (Bloomberg) -- The euro rose for the first time in three days against the yen and dollar as German investor confidence jumped to the highest level in more than three years, adding to evidence a global economic recovery is taking shape.
The pound increased from near a one-month low versus the dollar after a report showed the U.K. inflation rate was higher in July than economists forecast as the nation’s recession eased. The dollar and yen declined against major counterparts including the South African rand as stocks and commodities advanced, reducing demand for relative safety.
“Economic growth looks better, and capital flows into commodity-sensitive currencies,” said Warren Naphtal, who oversees $870 million in assets as the chief investment officer at P/E Investments in Weston, Massachusetts. “For the flight- to-quality trade to be taken to the next level, you really need very negative news.” read more

Euro’s Rally Against Dollar May Be in ‘Last Stage,’

June 2 (Bloomberg) -- The euro’s rally against the dollar may be entering its “last stage,” and investors would likely benefit from selling the 16-nation currency against the greenback, UBS AG said.
The euro is set to weaken toward $1.30, analysts led by Mansoor Mohi-uddin, Zurich-based chief currency strategist at the world’s second-biggest foreign-exchange trader, wrote in a note to clients yesterday. The analysts reiterated forecasts for the euro to trade at $1.40 in one month’s time and weaken to $1.30 in three months.
“We remain positive on the U.S. dollar and think that the greenback is likely in its final stage of weakness,” the analysts wrote. “Equity and bond flows have the potential to surprise and could lend support to the dollar.”
The dollar traded at $1.4168 per euro as of 12:33 p.m. in Tokyo. It has lost 6.3 percent against the single currency in the past month and traded as low as $1.4246 per euro yesterday, the weakest this year. read more

Dollar Declines as Slump Prompts Nations to Mull Alternative

June 2 (Bloomberg) -- The dollar dropped to its lowest level against the euro this year on speculation record U.S. borrowing will undermine the greenback, prompting nations to consider alternatives to the world’s main reserve currency.
The 16-nation euro gained for a fourth day versus the dollar as the Russian government said emerging-market leaders may discuss the idea of a supranational currency. The pound strengthened to $1.65 for the first time since October.

The dollar slid 0.9 percent to $1.4289 per euro at 10:52 a.m. in New York, from $1.4159 yesterday. It touched $1.43, the weakest level since Dec. 29. The dollar fell 0.5 percent to 96.08 yen, from 96.59. The euro rose 0.4 percent to 137.36 yen from 136.78. The pound traded at $1.6557, compared with $1.6443, after touching $1.6564, the highest level since Oct. 30.

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Pound Slides as S&P Signals Britain May Lose Top Debt Rating

May 21 (Bloomberg) -- The pound dropped against most of the other major currencies after Standard & Poor’s signaled Britain may lose its top credit rating for the first time as the government’s finances deteriorate during the economic slump.
Sterling declined from a six-month high versus the dollar and dropped the most in two weeks against the euro as S&P lowered the outlook on the U.K.’s AAA rating to “negative” from “stable.” The dollar rose from a four-month low against the euro after former Federal Reserve Chairman Alan Greenspan said the financial crisis isn’t over, increasing demand for the greenback as a haven.
“People will be cautious before placing bets on sterling,” said Brian Kim, a currency strategist at UBS AG in Stamford, Connecticut. “People will be watchful, and this will benefit those currencies of countries that don’t have fiscal problems, such as the Norwegian krone and the Australian dollar. We are going to see a pullback in the pound.”
The pound fell 0.8 percent to $1.5629 at 9:01 a.m. in New York, from $1.5755 yesterday. It earlier touched $1.5817, the highest level since Nov. 10. It dropped as much as 1.4 percent to 88.70 pence per euro, the largest intraday decline since May 7. The dollar was at 94.90 yen, compared with 94.88 yen. The U.S. currency traded at $1.3735 per euro, from $1.3780 yesterday, after touching $1.3839 earlier, the weakest level since Jan. 5. read more

Dollar’s Decline Begins to Take on ‘Life of Its Own,’

May 21 (Bloomberg) -- The dollar’s drop is broadening amid the thaw in credit markets and investor concern about the long-term effects of the Federal Reserve’s asset-buying program, according to Royal Bank of Scotland Group Plc.
“The decline in the dollar has developed more a life of its own this week, extending to major currencies,” Greg Gibbs, a foreign-exchange strategist in Sydney, wrote in a note today. “The broader thematic is that simply the U.S. was and is pursuing a relatively easy monetary policy that tends to create inflation pressure.” read more

Dollar on defensive but euro, others lack punch

TOKYO, May 15 (Reuters) - The dollar was back on the defensive on Friday, holding close to a four-month low, after a climb in U.S. stocks gave investor confidence a lift and boosted the fortunes of riskier currencies.
The euro, sterling and the Australian dollar held on to gains made on Thursday against the greenback and the yen, keeping within sight of recent highs made as optimism has grown that the worst of the global economic crisis may be over.
But they lacked conviction to push any higher against the dollar, even though stock markets in Asia were on the rise, and traders said the rally had run out of steam for now.
"The dollar still looks soft but people don't want to sell it too aggressively at these kind of levels," said Gerrard Katz, regional head of FX trading at Standard Chartered in Hong Kong. read more

Euro falls vs dollar after German GDP Fell.

May 15 (Bloomberg) -- The euro fell against the dollar and extended a weekly loss versus the yen after a German government report showed Europe’s largest economy contracted last quarter by more than economists estimated.
The euro also headed for its first weekly loss in a month versus the dollar on concern a European report today will show the region’s economy shrank at the fastest pace in at least 13 years. New Zealand’s dollar fell against all 16 of the most- traded currencies after a report showed retail sales dropped almost twice as fast as economists forecast. South Korea’s won rose as overseas funds bought more local stocks than they sold. The euro declined to $1.3593 as of 7:36 a.m. in London from $1.3639 in New York yesterday, heading for 0.3 percent loss this week. Europe’s currency fell to 129.93 yen from 130.67 yen, and was set for a 3.2 percent decline this week. The dollar bought 95.59 yen from 95.80 yen.

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