Australian dollar survives wild week
By Stephen Johnson | November 02, 2008
WATCHING the Australian dollar last week was like being on a rollercoaster ride after lunch.
The currency, known in foreign exchange markets as the "Aussie'', dropped to a five-and-a-half year low on Tuesday as fears of a global recession spooked traders.
But two days later the resilient Aussie battler, the world's fourth most traded currency, had staged a 15 per cent comeback.
Optimistic market strategists say the Australian dollar is undervalued and could test US80c again by Christmas as a recovery in commodity prices and a renewed confidence in financial markets makes risk-sentiment currencies more attractive.
Conversely, a London-based currency strategist says that in a worse-case scenario the Australian dollar could sink to US40c, a level below the all-time low of US47.78c touched in April 2001.
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Courtesy: Online Currency | theaustralian.news.com.au
BOJ keeps hand out of currency jar
Sunday, Nov. 2, 2008 |
October despite the yen leaping to its strongest level in more than 13 years against the dollar, the Finance Ministry said.
The ministry did not conduct currency intervention via the Bank of Japan from Sept. 29 to Oct. 29, and hasn't done so since March 17, 2004.
On Oct. 24, the dollar briefly entered the upper ¥90 range in London for the first time in 13 years and two months as prospects darkened for the global economy.
The Group of Seven economies expressed concern about the yen's rapid appreciation versus the U.S. dollar and other major currencies in an emergency statement released Monday — at the request of the BOJ.
Currency policy is controlled by the Finance Ministry, with the Bank of Japan acting as its agent.
Tokyo conducted sales of more than ¥35 trillion in the 15 months from January 2003 through March 2004 to stem the yen's sharp rise against the dollar. A stronger yen hurts exports, the main engine of Japan's economic growth.
Courtesy: search.japantimes.co.jp | Currency Abroad
NT dollar enjoys biggest weekly gain since March
FOREIGN EXCHANGE: Although the NT dollar on Friday pared its solid advance for the week, it contributed to regional currency strength, an IDEAglobal analyst said
Sunday, Nov 02, 2008, Page 10
The New Taiwan dollar had the biggest weekly gain against the greenback in eight months on speculation governments around the world will provide further support measures to stem the deepening global economic slump.
The NT dollar gained 1.2 percent this week after the IMF said it has sufficient money available to meet current demand for loans from member nations. US Federal Reserve Chairman Ben Bernanke signaled he’s ready to cut the benchmark interest rate to the lowest level on record, after a half-point reduction to 1 percent.
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Courtesy: Exchanging Money Abroad | Bloomberg | taipeitimes.com
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