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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Dollar retreats as investors look to diversify

TOKYO, May 11 (Reuters) - The dollar fell on Monday, hitting its lowest in seven weeks on the euro and seven months on the Australian dollar, as investors emboldened by slowing U.S. job losses extended diversification into other currencies.
The dollar index .DXY hit a fresh four-month low, following through on a fall on Friday after data showed the U.S. economy shed 539,000 jobs in April, fewer than expected and boosting hopes the worst of the economic slump may be over.
Analysts said that with several risk events out of the way, such as stress tests for U.S. banks and the jobs numbers, investors seemed more confident, although it was hard to see what there was in the way of near-term events to keep up that momentum.
As a result currencies were expected to look to equity markets for now, though Asian stocks were putting in a mixed performance after gains on Wall Street on Friday and S&P futures SPc1 were down 0.6 percent, indicating a weak U.S. start later.

Yen, Dollar Gain on Speculation U.S. Banks Will Need More Funds

May 6 (Bloomberg) -- The yen and the dollar rose against the euro on concern U.S. regulators will say Bank of America Corp. needs $34 billion in new capital, boosting demand for the relative safety of the currencies.
Japan’s currency climbed versus the greenback by the most in more than a week and gained against all 10 major Asian currencies. Bank of America faces the largest need for new capital among the 19 banks reviewed, according to people familiar with the matter. The euro fell the most in more than a week against the yen on concern the European Central Bank tomorrow will cut interest rates and buy debt to stem the slump.

The yen rose 0.7 percent, the most since April 24, to 98.10 per dollar as of 6:05 a.m. in London from 98.82 yesterday in New York. Japan’s currency climbed 1.2 percent, the most since April 27, to 130.13 per euro from 131.73 in New York yesterday. The dollar advanced to $1.3262 per euro from $1.3330. read more

Canadian Dollar Rises to Highest Since November as Stocks Gain

Canada’s dollar advanced to the highest level since November as speculation the worst of the global economic crisis is over boosted the appeal of currencies that would benefit from renewed growth.
“Commodity currencies can continue to do well as we come out of the worst of the production-cycle downturn,” said Daniel Katzive, a senior currency strategist at Credit Suisse Group AG in New York. “We’re cautiously optimistic on the Canadian dollar.”
The Standard & Poor’s 500 Index rose 3.4 percent to 907.24 after its biggest monthly advance in nine years, as pending home resales in the U.S. unexpectedly rose. Canada’s dollar, a proxy for risk appetite, tends to track movements in equities.
The Canadian currency, known as the loonie, appreciated 1 percent to C$1.1734 per U.S. dollar

at 4:03 p.m. in Toronto, from C$1.1852 last week. It touched C$1.1733, the strongest level since Nov. 10. One Canadian dollar buys 85.22 U.S. cents. read more

Euro Falls on Speculation ECB Will Cut Rates to Stem Recession

May 5 (Bloomberg) -- The euro fell against the dollar and the yen on speculation the European Central Bank will cut interest rates to a record to counter a deepening recession, diminishing the allure of assets in the 16-nation region.
The euro slid versus 12 of the 16 most-active currencies after the European Commission yesterday said the euro-area economy will shrink 4 percent this year, twice the contraction projected three months ago. The dollar rose versus all but two of the currencies after the Wall Street Journal reported U.S. regulators will tell 10 lenders to raise more capital, spurring demand for the relative safety of the greenback. Australia’s dollar gained after its central bank left rates unchanged. read more

Australian, N.Z. Dollars Fall a Second Day as Swine Flu Spreads

April 28 (Bloomberg) The Australian and New Zealand dollars fell for a second day on concern the spread of swine flu from Mexico will hurt tourism and deepen the global recession, spurring investors to sell riskier assets.
Australia’s currency dropped below 70 U.S. cents for the first time in a week after a Wall Street Journal report said U.S. regulators told Bank of America Corp. and Citigroup Inc. that they need more capital. New Zealand’s dollar slid the most in a week versus the greenback and yen. Ten students suspected of having swine flu in New Zealand will likely be confirmed as having the virus, a person familiar with the tests said.
“Higher risk aversion is being prompted by persistent concern over swine flu,” said Sue Trinh, senior currency strategist at RBC Capital Markets in Sydney. “You’ve also got that Wall Street Journal article headlining that Citibank and Bank of America are being pushed by U.S. regulators to raise more capital. That’s definitely causing this next leg down.” read more

Yen jumps on US bank concerns, flu fears

The yen jumped to a seven-week high against the euro and a one-month peak against the dollar on Tuesday, on a report that regulators have told Bank of America (BAC.N) and Citigroup (C.N) they may need to raise more capital.
The yen extended gains as the report intensified investors' aversion to risk, already heightened by fears of a flu pandemic hampering any recovery in the global economy.
Higher yielding currencies such as the Australian and New Zealand dollars came under pressure.

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Mexico Peso Falls on Concern Swine Flu to Deepen Economic Slump

Mexico’s peso sank to the lowest level in almost three weeks against the dollar on concern an outbreak of the deadly swine flu will deepen the country’s recession.
The peso depreciated as much as 3.5 percent, the steepest intraday slide since Nov. 5, and was 2.6 percent lower at 13.6978 per dollar at 8:18 a.m. in New York. The decline was the biggest among 176 currencies tracked by Bloomberg worldwide.
The flu outbreak may reduce demand for pesos from tourists and curb consumer spending at restaurants, theaters and other venues where crowds gather, said Gerardo Margolis, a vice president for emerging markets at TD Securities Inc. in Toronto. The virus may have claimed more than 100 lives so far in Mexico, Health Minister Jose Cordova said.
The spread of the swine flu “has an immediate economic impact and investors will be cautious,” Margolis said. “There will be a drop in consumption and tourism and that affects the currency.”

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FOREX-Yen gains as flu fears stoke risk aversion

The yen strengthened broadly on Monday as concerns that an outbreak of swine flu in Mexico may spread into a global pandemic sent investors seeking currencies perceived as safe havens, while the Mexican peso fell sharply.
The flight to safety also boosted the dollar against currencies other than the yen, and dented currencies seen as higher risk such as the Australian and New Zealand dollars.
European shares fell 1.2 percent .FTSE as investors feared a flu pandemic could snap a nascent global economic recovery, sending the yen -- which typically gains during heightened risk aversion -- to a one-month high versus the dollar.
The Mexican peso fell around 3 percent versus the dollar after more than 100 people were confirmed to have died in Mexico from the swine flu virus, which has spread across North America and as far as New Zealand
The euro fell against the dollar, erasing most of Friday's gains which came after the closely-watched German Ifo survey showed business confidence improving more than expected, which boosted hopes that the euro zone economy may be over the worst. read more

Euro Gains Versus Dollar, Yen as Credit Suisse Posts a Profit

The euro climbed to $1.3029 as of 6:48 a.m. in London from $1.3005 yesterday in New York. It advanced to 127.67 yen from 127.48, after earlier weakening to 126.80. Japan’s currency was little changed at 97.98 per dollar from 98.01.

The euro rose against the dollar and reversed losses against the yen after Credit Suisse Group AG, the biggest Swiss bank by market value, said it returned to profit in the first quarter.
Japan’s currency erased earlier gains on speculation a rebound in Asian equities will prompt investors to purchase higher-yielding assets. The euro strengthened for a third day against the dollar before European reports today that may show the region’s manufacturing and service industries improved for a second month in April, adding to evidence the euro area’s recession is easing.
“Asian stock markets, a gauge for risk-aversion, rebounded following Credit Suisse’s earnings news,” Tomohiro Nishida, a foreign-exchange dealer at Chuo Mitsui Trust & Banking Co. in Tokyo. “The bounce back of stocks triggered buying of the euro and other higher-yielding currencies.” read more

Yen rises vs Dollar on U.S. bank jitters !

The yen rose broadly on Thursday, climbing back towards a three-week high against the dollar touched the previous day, as U.S. stock futures fell and concerns about the banking sector re-emerged after disappointing earnings from Morgan Stanley.
S&P futures fell 0.3 percent SPc1 after U.S. stocks faced a late hour sell-off on Wednesday, with investors concerned about the outlook for banks ahead of the U.S. government's "stress test" results.
The Wall Street Journal reported that U.S. banks will be briefed by regulators as early as Friday on how they performed in the tests before the results are made public later.
Some estimates of banks' likely losses that were used in the stress tests were tougher than expected, the newspaper said. read more

Yen Weakens, Snaps 3-Day Gain

The yen fell for the first time in four days against the euro and the dollar before a government report tomorrow that may show Japan posted a trade deficit last month, damping the currency’s appeal.
Japan’s currency also declined from a five-week high versus the euro as technical indicators signaled its recent gains were excessive. The euro climbed from the lowest in a month against the dollar on speculation a German report today will show investor confidence turned positive for the first time in two years. South Korea’s won slid the most in a week as widening U.S. credit losses tempered demand for emerging-market assets.
“The Japanese economy is in a terrible way and people are very pessimistic,” said Sean Callow, senior currency strategist in Sydney at Westpac Banking Corp., Australia’s biggest bank by market value. “If we get much further deterioration in the trade position, it should be a yen negative.”
The yen weakened to 127.02 per euro as of 7:30 a.m. in London from 126.48 in New York yesterday. It has gained 3.3 percent against the euro in the past week and earlier reached 126.09, the strongest level since March 16. Japan’s currency declined to 98.25 per dollar from 97.89, and dropped to 68.88 against Australia’s dollar from 68.20. read more

Dollar spreads widen on equities slide !

Spreads between dollar interbank costs and other risk-free measures widened in Asia on Tuesday as sliding equity markets and anxiety over government funding for U.S. banks spawned a fresh bout of credit risk.
The widening of spreads on Tuesday was spurred in part by news of a jump in bad loans at Bank of America (BAC.N).
But spreads have been creeping higher since last week against a backdrop of a reversal in the steep stock market rally, worries over banks' solvency and concerns over the outcome of the stress tests the U.S. government is conducting on its banks. read more

Euro’s Decline May Signal Tumble in Stocks !

The euro will probably fall further against the dollar, potentially signaling a decline in U.S. stocks, according to a Citigroup Inc. report that cites trading patterns.
The 16-nation currency may fall to between $1.28 and $1.2760 after depreciating below a support level at $1.3113 and the 55-day moving average of $1.3025, Citigroup technical analysts Tom Fitzpatrick in New York and Shyam Devani in London wrote in a note today. The euro’s decline may signal a drop in the Standard & Poor’s 500 Index, they wrote.
“Euro-dollar has broken lower and further losses are expected,” the report said. “Is this giving a leading indication of where the stock market may be heading?”
The euro fell on Jan. 5, breaking through “near-term support levels” the day before a peak in the S&P 500 that preceded a two-month equities plunge, according to the Citigroup report. The drop took the stock index to a 12-year low March 6. read more

Euro falls to a one-month low against Dollar !

The euro fell to a one-month low against the dollar after European Central Bank President Jean- Claude Trichet said the central bank must do everything possible to boost confidence, signaling he may cut interest rates further.
The Dollar Index rose for a fourth day before a U.S. report today that may show consumer confidence in the world’s largest economy increased for a second month, adding to evidence its recession may be easing. South Korea’s won headed for a sixth weekly advance, its longest winning streak in 18 months, on optimism record-low borrowing costs and government stimulus plans will help encourage economic growth.
“Economies around the world, particularly Europe, are still in a recession,” said Yuji Saito, head of the foreign- exchange group in Tokyo at Societe Generale SA, France’s third- largest bank. “ECB officials are increasing their rhetoric that they’ll cut rates. The bias for the euro is to the downside.” read more

Dollar costs dip !

Dollar funding costs dip in Asia on Monday, although falling eurodollar futures and wider swap spreads reflect the lingering scepticism and risk-aversion in markets that has driven U.S. Treasury yields down this week.
* In Singapore, 3-month dollars are quoted at 1.1025 percent, down from 1.12 percent on Thursday and within striking distance of this year's trough at 1.09 percent in mid-January.

* Eurodollar futures EDZ9 meanwhile move down, notwithstanding the rally in stocks and dip in dollar funding costs, with December eurodollar futures pricing 3-month LIBOR at 1.28.

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Yen, Dollar Strengthen on Concern Global Recession

The yen and the dollar advanced on speculation the global recession is deepening, spurring demand for the relative safety of the two currencies.
Japan’s currency rose to the strongest in two weeks against the euro as Asian shares dropped, prompting investors to cut holdings of higher-yielding assets. The yen also gained versus the greenback before U.S. reports that may show industrial output fell for a fifth month and manufacturing contracted. Nine of the 10 most-traded Asian currencies outside Japan weakened after China said foreign direct investment fell a sixth month.
“The markets are returning to reality from an exuberant state,” said Ryohei Muramatsu, manager of Group Treasury Asia in Tokyo at Commerzbank AG, Germany’s second-biggest bank. “This is a correction which is leading to some buying of the yen. The dollar may be supported as the currency is likely to regain credibility.” read more

Yen, Dollar Fall Versus Higher-Yield Currencies as Stocks Gain

The yen and the dollar weakened against higher-yielding currencies as stocks rallied, spurring investors to favor riskier assets.
Japan’s currency also fell as a gauge of expected movements in foreign-exchange markets declined to the lowest level since September, signaling a lower risk of fluctuations that can undermine so-called carry trades. South Korea’s won rose the most versus the dollar among the 16 most-active currencies after the government sold bonds overseas for the first time in more than two years to bolster its foreign-exchange reserves. read more

Indian Rupee to Rise on ‘Bearish Signal’ in Dollar

India’s rupee may strengthen against the dollar after the U.S. currency showed two “bearish signals,” said Winston Tang, a technical analyst at Forecast Pte in Singapore.
The dollar-rupee weakened below the 50-day moving average of 50.0558 on April 6 and also broke an uptrend line from Dec. 19, Tang said. The rupee will extend gains toward its first target at the 100-day moving average of 49.43, Tang said. A break there would see it advance to 48.50, a so-called “congestion level.”
“These to me are very bearish signals,” Tang said. “The uptrend from December has been broken and the bearish sign is further confirmed by the close below the 50-day moving average, another bearish signal.”
The rupee closed at 50.0550 to the dollar on April 6, according to data compiled by Bloomberg. Indian markets were closed yesterday for a public holiday. read more

Yen gains, suffering stocks cut risk demand

The yen climbed broadly while the euro stumbled on Wednesday, as concerns that corporate earnings may show the global economy remains very weak stung shares and cut demand for currencies perceived to be a higher risk.
Lower European shares helped to push the euro down against the dollar and the yen, which tend to benefit from heightened risk aversion. Comments from Dallas Federal Reserve President Richard Fisher that the euro faced even more problems than the dollar also hit the common currency.
Traders awaited data on German industrial orders due at 1000 GMT.
Risk appetite was hit after a weak earnings report from aluminium group Alcoa (AA.N) raised concerns that other firms, due to state earnings later in the month, may also show poor performance in the first quarter.
"We're seeing an ongoing correction in the sharp increase in risk appetite from last week," said Carl Hammer, currency strategist at SEB Merchant Bank in Stockholm.
Higher-risk currencies including the euro and sterling have retreated after they had rallied on optimism that stimulus efforts would eventually filter through the global economy, which had boosted stock markets. read more

Euro Rises Against Dollar

The euro rose against the dollar on Monday after the meetings by the European Central Bank and the Group of 20 world leaders last week instilled a sense of optimism in financial markets.
The 16-nation euro bought $1.3544 in European morning trading, up from the $1.3481 late Friday in New York.
The British pound rose to $1.4928 compared with $1.4817 while the dollar was also up against the Japanese yen, at 101.21 compared with 100.28 yen late Friday in New York.
Last Thursday, the European Central Bank made a modest interest-rate cut but said it could lower the rate further if necessary. That leaves the ECB with more room to maneuver than the U.S. Federal Reserve and the Bank of England, which already have lowered their rates to near zero. read more

U.K. Pound Retains 'Ability to Collapse'

The pound may tumble amid persistent “economic problems” in the U.K., MIG Investments SA said.
“Though the pound has performed splendidly over the past six weeks, the economic problems do not seem to be going away despite some better-than-expected numbers last week,” Paul Day, chief market analyst at MIG in Neuchatel, Switzerland, wrote in an e-mailed note today. “The pound remains a currency that has the ability to collapse at some point in the future.”
The British currency rose 0.6 percent to $1.4928 as of 8:26 a.m. in London. It strengthened 0.2 percent to 90.69 pence per euro. read more

Futures Traders Turn Bullish on Euro

Futures traders turned bullish on the euro against the U.S. dollar this week for the first time since July, figures from the Commodity Futures Trading Commission show.
The difference in the number of wagers by hedge funds and other large speculators on an advance in the euro compared with those on a drop, known as net longs, was 2,265 on March 31, compared with net shorts of 5,458 a week earlier. It is the first time that speculators were net long the euro since the week ended July 22.
The dollar weakened 1.5 percent this week to $1.3491 per euro, from $1.3287 on March 27 as investors sought higher- yielding assets on speculation the worst of the economic recession may be ending.
Net short positions on the euro versus the dollar were 9,039 as of March 17, a day before the dollar dropped a record 3.4 percent versus the euro after the Federal Reserve announced plans to buy as much as $300 billion in Treasuries. read more

Most-active Asian currencies RIse for Fifth Week

April 4 (Bloomberg) -- Asian currencies rose for a fifth week, the longest winning streak since October 2007, after Group of 20 leaders pledged more than $1 trillion to help combat a global recession.
Eight of the 10 most-active Asian currencies outside Japan advanced in the week after economic reports in China, the U.S. and the U.K. fuelled speculation that demand for regional exports will strengthen. The Bloomberg-JPMorgan Asia Dollar Index, which tracks their performance, touched a two-month high on April 2 as regional stocks rallied.
“The G-20 initiatives have injected positive sentiment into stocks and currencies in the region,” said Suresh Kumar Ramanathan, a currency strategist at CIMB Investment Bank Bhd. in Kuala Lumpur. “It would be tough to get another massive set of news to support further gains.” read more

Euro falls vs dollar as U.S. jobs data looms

LONDON, April 3 (Reuters) - The euro fell against the dollar on Friday in cautious trade as investors nervously awaited key U.S. employment data which are expected to show the U.S. economy suffered deep job losses in March.
The non-farm payrolls figure, due at 1230 GMT, is forecast to show a fall of around 650,000 jobs in March to take the unemployment rate to a 26 year high of 8.5 percent.
Speaking on Friday, White House spokesman Robert Gibbs warned the jobs report is likely to show "additional severe job cuts".
Nevertheless, the euro pared earlier losses against the dollar and gained against the yen, while sterling also rose after better-than-expected euro zone and UK services sector data, which helped European equities .FTEU3 to trim losses. read more

Euro rises after ECB rate decision

The euro rose the most against the dollar in two weeks as the European Central Bank lowered its benchmark interest rate less than forecast and deferred a decision on what else it can do to rescue the economy.
The yen and dollar fell against all of the other major currencies on reduced demand for safety as U.S. accounting regulators approved a rule change that may boost bank profits and leaders of the Group of 20 nations pledged more than $1 trillion in emergency aid. Japan’s currency dropped to a five- month low near 100 versus the dollar.
“It’s not surprising to see the euro pop up,” said Paresh Upadhyaya, who helps manage about $30 billion in currency assets as a senior vice president at Putnam Investments LLC in Boston. “The ECB neither advocates nor rules out unconventional measures. The market has entered into a new phase of risk- seeking behavior. The dollar will remain under pressure across the board.”
The euro rose as much as 2 percent to $1.3517, the biggest intraday advance since March 18, before trading at $1.3446 at 4:01 p.m. in New York. The 16-nation currency climbed 2.5 percent to 133.84 yen from 130.52. The dollar appreciated 1 percent to 99.54 yen from 98.53 after touching 99.90, the highest level since Nov. 5. read more

Stocks rally on G20 news

Global stocks and oil surged on Thursday on optimism over efforts by world leaders meeting in London to revive global growth and on a change in U.S. accounting rules that will help ailing banks whose troubles triggered the worst economic crisis in decades.
Oil prices rocketed up more than 8.0 percent above $52 a barrel on hopes that demand will rebound after world leaders at the G20 summit agreed to pump an additional $1.1 trillion into the global economy through extra funding for groups like the International Monetary Fund. For details see [ID:nL1230573].
The upbeat tone at the G20 summit boosted the risk appetite for many asset classes by raising hopes among investors that a coordinated effort would reverse the shrinking of the global economy for the first time since World War Two. read more

Forex moves help push up reinsurance rates-brokers

LONDON, April 1 (Reuters) - The cost of reinsurance continues to rise as 2008 investment and catastrophe losses and volatile foreign exchange rates combine to curb capacity, leading reinsurance brokerages said on Wednesday.
Aon Benfield, the world's biggest reinsurance broker, said property catastrophe rates had continued to firm in most regions at the April 1 renewals, when many insurers renegotiate the cost and terms of the annual risk cover they buy from reinsurers.
"The April reinsurance renewals continued the global trends witnessed in January, with the exception of the significant influence of currency fluctuations, mainly the strengthening of the Japanese yen," Bryon Ehrhart, chief executive officer of Aon Benfield Analytics, said in a statement. read more

Asia stocks score biggest monthly jump in a decade

HONG KONG: Asian stocks edged up on Tuesday to score their biggest monthly rise in a decade as some investors bet the most painful stretch of
corporate earnings damage may be over and bought technology shares. As the first quarter and Japan's financial year draws to a close, stocks, oil prices and higher-yielding currencies gained after a one-day battering on news that the US government was considering pushing General Motors into bankruptcy. Government bonds retreated as equity markets regained their composure, while the dollar slipped as investors favoured riskier assets. Asian stocks outside Japan finished the first quarter with a dip of around a per cent but were up around 14.3 per cent in March, the largest monthly gain since April 1999. "There has been a huge change in sentiment. Rather than anticipating huge sell-offs in the US, we've been anticipating rallies," said Peter Wright, a dealer with Burrell Stockbroking in Sydney. Many stock markets have thrashed in ranges near last year's lows, with investors cautious about calling a turnaround as the global economy remains mired in a deep recession. read more

European stocks rise in broad rally led by banks

PARIS, March 31 (Reuters) - European stocks gained ground in early trade on Tuesday in a broad rally clawing back a portion of the past two sessions' sharp losses as investor focus turned to a meeting of G20 world leaders.
British retailer Marks & Spencer (MKS.L) surged 11 percent after posting a smaller-than-expected fall in underlying fourth-quarter sales, saying it was turning around its troubled food business and holding market share in clothing.
At 0832 GMT, the FTSEurofirst 300 .FTEU3 index of top European shares was up 1.6 percent at 720.58 points. The index, which sank 3.9 percent on Monday, is down 14 percent in 2009, hit by the deepening global economic downturn as well as fears over the health of the banking system.
"The macro landscape has been stabilising, which has helped equities bounce back from historical lows. But to really improve market sentiment, we need to see the data improving and not just stabilising," said Jacques Henry, analyst at Louis Capital Markets, in Paris. read more

C$ lifted by oil strength, climbing equities

TORONTO, March 31 (Reuters) - The Canadian dollar roseagainst the U.S. currency on Tuesday, as the price of oil roseand equity markets climbed after tumbling the previoussession. At 7:29 a.m. (1129 GMT), the unit was at C$1.2542 to the U.S. dollar, or 79.73 U.S. cents, up from Monday's finish at C$1.2618 or 79.25 U.S. cents. At one point on Tuesday, the Canadian unit touched 1.2503 to the U.S. dollar, or 79.98 U.S. cents. "As equity markets rally that tends to lower levels of risk aversion and it tends to point to a slightly more optimisticoutlook for the markets and the global economy," said George
Davis, chief technical strategist at RBC Capital Markets. "The Canadian dollar tends to benefit from that type of backdrop." read more

Dollar, euro advance vs yen on fiscal year-end demand.

TOKYO, March 31 (Reuters) - The dollar and euro advanced against the yen on Tuesday, buoyed by Japanese investors' demand on the last day of Japan's financial year.
The greenback was also supported as a safe haven amid risk aversion that battered other currencies such as the euro the previous day.
The dollar and yen, traditional safe havens during times of financial market turmoil, were boosted the previous day as fears of bankruptcy for U.S. automakers General Motors (GM.N) and Chrylser sparked a sharp drop in global stock markets.
But on Tuesday the dollar gained a slight advantage against the yen as the end of Japan's financial year generated book-keeping demand for foreign currencies.
"The dollar is being buoyed as Japanese investors try to secure the currency on the last day of the fiscal year. Investors' demand for the yen stemming from repatriation flows, on the other hand, appears to have peaked," said a trader at a Japanese bank. read more

Oil tumbles below $49 on gloomy economic outlook

HOUSTON (AP) — Oil prices tumbled below $49 Monday as unease about the economy — from Asia to Wall Street — raised doubts about the global appetite for energy.
Benchmark crude for May delivery fell more than 7.6 percent, or $3.97, to settle at $48.41 on the New York Mercantile Exchange.
In London, Brent prices fell $3.19 to settle at $47.99 a barrel on the ICE Futures exchange.
Gasoline futures plunged more than a dime a gallon.
Jim Ritterbusch, president of energy consulting group Ritterbusch and Associates, said he expects oil to fall as low as $47 in advance of the U.S. crude inventory report, the monthly unemployment report and a meeting of the Group of 20 world leaders in London, all this week.
"Late in the week, all hell could break loose, but I don't know whether it makes the market go up or down," Ritterbusch said. read more

Euro in biggest one-day loss vs dollar in 2 months

NEW YORK, March 27 (Reuters) - The euro endured its biggest one-day loss against the dollar in more than two months on Friday after Germany's finance minister said fiscal irresponsibility in Europe could put the currency at risk.
Traders said the comments by German finance minister Peer Steinbrueck, along with weaker-than-forecast euro zone industrial orders and German inflation data, triggered pre-placed euro sell orders.
The greenback drew support ahead of next week's Group of 20 meeting while the yen rallied on last-minute fund repatriation by Japanese investors ahead of fiscal year end and expectations for further flows to Japan due to a change in tax regulation. read more

Stocks fall as automaker plans are rejected

NEW YORK – Wall Street's big March rally was officially on hold after the White House rejected turnaround plans from General Motors Corp. and Chrysler and gave investors a reality check on the economy.
All the major indexes fell more than 3.5 percent, including the Dow Jones industrial average, which lost more than 280 points. Financial stocks weighed heavily on the market.
Fears of an automaker bankruptcy have been looming over investors for months, and the latest developments, which included the removal of GM's CEO Rick Wagoner, made the market even more uneasy not only about the industry, but the overall economy. However, analysts said the pullback, which began with a 148-point drop in the Dow Friday, wasn't surprising after the average surged 21 percent over just 13 days. read more

Pound Falls, Gilts Rise as Stocks Slide, Bank Job Losses Loom

March 30 (Bloomberg) -- The pound fell against the dollar for a fourth day and gilts rose as equities dropped and an industry group said financial-services companies may eliminate as many as 15,000 jobs in the second quarter.
Sterling slipped to its lowest level in almost two weeks as leaders of advanced and emerging economies prepared to meet to discuss a global approach to financial regulation at the Group of 20 summit in London on April 2. Today’s drop versus the dollar put the pound on course for its third straight quarterly loss, the longest stretch of declines since December 2005.
“The pound is going to suffer given the negative global news,” said Ian Stannard, a senior currency strategist at BNP Paribas SA in London. “The increasing likelihood that we might not get anything significant out of the G-20 is going to weigh on equity markets and the pound too. Sterling could well be the underperformer of the week.” read more

Options Turn Most Bullish on Aussie, Kiwi Since 2003

March 30 (Bloomberg) -- Investors are the most bullish on Australian and New Zealand dollars since 2003, anticipating that spending on commodities will increase as central banks print unprecedented amounts of cash to rescue their economies.
Nineteen of the largest developed economies are spending 43 percent of their average gross domestic product to end the worst economic crisis since the Great Depression, the International Monetary Fund said March 6, adjusting for cost-of-living variances. The Group of 20 nations’ debt will jump next year to 77 percent of GDP, up 11 points from 2008, the IMF report said.
Aberdeen Asset Management, Hermes Pension Management Ltd. and Kokusai Global Sovereign Open Fund figure that new money will spur demand for everything from iron ore and oil to wool, so they’re buying Aussies, kiwis and Norwegian kroner. read more

U.S. stock futures slump as GM may go bankrupt

LONDON (MarketWatch) -- U.S. stock futures slumped on Monday after the White House said bankruptcy might be the best option for General Motors, forced out its chief executive and told Chrysler to form an alliance with another car maker, while hopes for a new round of global stimulus spending looked likely to fall short of earlier expectations.
S&P 500 futures fell 18.4 points to 797.8 and Nasdaq 100 futures fell 21 points to 1,235. Dow industrial futures fell 173 points.
U.S. stocks, despite a weak Friday, enjoyed a strong week, with the Dow Jones Industrial Average up nearly 7% and the other major indexes rising around 6% as the U.S. Treasury announced a program designed to get a combination of public and private money buying the toxic assets from banks read more

Dollar and yen rally as stocks falter

The dollar and the yen advanced on Monday as concerns over the US auto sector helped stem the recent rally in risky assets.
The Obama administration rejected restructuring plans for General Motors and Chrysler. Meanwhile, news of more bank bail-outs in Spain and the UK undermined financial stocks.
Analysts said investors were also on the defensive ahead of the G20 meeting of world leaders, which is due to start in London on Thursday.
“Although we remain of the view that forces are growing that will seriously undermine the dollar in the longer term, it is clear that the greenback has yet to fully relinquish its status as haven currency of choice,” said Neil Mellor at Bank of New York Mellon. read more

Global stocks, oil fall on worries on automakers

NEW YORK, March 30 (Reuters) - Global stocks skidded on Monday as President Barack Obama's harsh medicine for ailing U.S. automakers threatened bankruptcy for General Motors and Chrysler, and oil fell below $50 a barrel on the slumping equity markets and a stronger dollar.
The dollar and yen rallied on fears the two automakers may be forced into bankruptcy after Obama rejected their turnaround plans, prompting anxious investors to cut exposure to risk and seek safety in the two currencies.
Gold also firmed as investors sought safety, but gold futures later turned lower on the stronger dollar.
Bank rescues in Europe weighed on financial shares on both sides of the Atlantic, while the renewed concerns about banks and automakers lifted U.S. and European government debt prices.
The flare-up of woes in the banking and auto industries unnerved investors who bid up stocks and the dollar in recent weeks on hopeful signs the economic downturn might be bottoming.

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G20 to agree not to hurt others with devaluations.

LONDON (Reuters) - Leading and emerging nations will commit this week to pursuing responsible economic policies that do not hurt each other's prospects with protectionism or currency devaluations, according to a draft G20 statement.
The G20 group is due to meet in London on Thursday to discuss the next steps to tackle a crisis that has brought about the collapse of major financial institutions and huge job losses after credit dried up.
As the British capital and financial district braced for clashes around the summit, police said five people suspected of planning to join protests had been arrested and were being held under counter-terrorism powers, after weapons were found in a raid on a house in western England. read more

US Dollar Bull Trend Accelerates; Buy Dips

EURUSD resistance at 1.3415
-GBPUSD triangle, support below 1.40
-AUDUSD and NZDUSD sell off - tops in place?
-USDCHF support at 1.1350

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