Economics

Oil price hits Asian currencies

HONG KONG – Surging oil prices have put pressure on Asian currencies, but the impact has been magnified by other factors influencing the region, according to analysts.

HK$ intervention set to continue

HONG KONG – The Hong Kong Monetary Authority (HKMA) looks set to continue its intervention to support the Hong Kong dollar over coming weeks, analysts say.

Euro doubts remain despite EC growth forecasts

LONDON – Economic growth in the eurozone is set to exceed the European Commission’s forecast of 1.7% in 2004, it said in its quarterly report last week – but analysts remain sceptical that this will be enough to sustain the euro’s current rally.

Snow hails CME's China deal

CHICAGO – The Chicago Mercantile Exchange (CME) has forged a ground- breaking deal with a central bank-sponsored FX trading platform in China, in a move hailed by US government officials as a crucial step towards renminbi flexibility.

Japan's MoF steers clear of intervention

TOKYO – Japan's Ministry of Finance (MoF) last week revealed it has not intervened in the FX markets since mid-March – and is likely to refrain from further currency intervention for some time, said market participants.

Congress rise slows Indian rupee ascent

MUMBAI – The success of the Congress Party in the recent Indian elections sent tremors through the FX market last week, and may have a longer-term negative impact on the world’s largest emerging currency market.

Politics overshadows economics for zloty

WARSAW -- The resignation of the Polish prime minister from the leadership of the ruling Democratic Left Alliance (SLD) Party will lead to continued volatility in the zloty, which is already close to record lows, analysts said last week.

Thai baht flies high despite bird flu

BANGKOK -- Market participants remain bullish on the outlook for the Thai baht, despite the outbreak of avian influenza that has hit Thailand and other parts of Asia in recent weeks.

Rand-weakening options running dry

LONDON -- The recent weakening of the South African rand, which dropped from 6.3128 on January 5 to 7.0649 on January 30, may be hard to sustain, as the authorities run out of options to force the currency lower, analysts warned last week.

Five-year-old euro comes of age

FRANKFURT -- When the euro was first introduced, many were sceptical about its potential for success and concerned about its impact on the FX market as a whole. But as it celebrated its five-year anniversary this month, the euro’s status is gradually…

China stands firm on peg

BEIJING -- China will continue to stand firm in the face of increasing international pressure to relax the yuan’s peg to the US dollar, analysts in the Asia-Pacific told FX Week .

NZ dollar to strengthen

WELLINGTON -- The New Zealand dollar is set to strengthen against the greenback to at least 60 US cents by the end of the year, according to market participants in the Asia-Pacific.

All eyes on the Middle East

Growing interest in Islamic banking, new technological developments and a wave of freshly repatriated money have put forex trading in the Middle East on the cusp of an exciting new era, reports Nikki Marmery

Baht appreciation to slow on central bank reforms

BANGKOK -- The decision by the Bank of Thailand (BOT) in late July to loosen FX restrictions should slow the Thai baht’s appreciation, say local market participants. But strong economic fundamentals in Thailand mean that appreciation is unlikely to…

Won worries for Korea

SEOUL -- The Korean won could be weakened in the medium term by the slowing of South Korea’s economy and government policy failing to tackle a slump in consumer spending, says a recent report by Barclays Capital.

Yuan’s US dollar peg to stay despite speculation

Beijing – Speculation that China may relax the yuan’s US dollar peg refuses to go away. Following media reports in June of US Treasury Secretary Jon Snow saying the Chinese government is considering widening the yuan’s trading band, the rumour mill is…

No change likely for ringgit/dollar peg

KUALA LUMPAR -- The Malaysian ringgit’s (MYR) peg to the US dollar is likely to remain in place, analysts in Asia told FX Week , despite mounting speculation last week that it may be relaxed ahead of Malaysian prime minister Mahathir Mohamad’s retirement…

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