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Today, the Bank of Canada, the Bank of England, the European Central Bank (ECB), the Federal Reserve, the Bank of Japan and the Swiss National Bank are announcing coordinated measures designed to address the continued elevated pressures in US dollar short-term funding markets. These measures, together with other actions taken in the last few days by individual central banks, are designed to improve the liquidity conditions in global financial markets. The central banks will continue to work together closely and will take appropriate steps to address the ongoing pressures. Bank of England action The Bank of England will offer...

BRUSSELS: Worried Euro Zone policy makers yesterday pressured Washington to do more to limit the dollar's slide after it hit its lowest ever value against Europe's single currency. While finance ministers raised the tone of their complaints, saying exchange rates were no longer in line with economic reality, there was no mention - implicit or explicit - of any direct central bank intervention to influence currency markets. Belgium's representative at the European Central Bank Guy Quaden said: "Things are becoming exaggerated." "It's up to the relevant authorities to assume their responsibilities and particularly for US authorities, who repeat that they...

The Ministry of Culture has begun insisting that tourists visiting the country’s monuments, including the Taj Mahal, pay the entrance fees in rupees rather than in dollars. Entrance to many sites for foreign tourists is priced in dollars and then converted to rupees, but the ministry has been losing tourism revenue as the dollar slid more than 12 percent this year against the rupee. The government had fixed a $5 entrance fee for World Heritage sites like the Taj Mahal and Humayun’s Tomb and $2 for other monuments at a time when the dollar was worth about 50 rupees. It...

NEW YORK (AP) — Stocks headed to a lower open Friday after Wachovia Corp. said it expects to increase quarterly loan losses..... The nation's fourth-largest bank said in a filing with the Securities and Exchange Commission that credit market volatility could cause a $1.1 billion write-down for October alone. The problem stems from its asset-backed securities, such as collateralized debt obligations, that have lost value on sinking investor demand.The market was also on edge after Federal Reserve Chairman Ben Bernanke said Thursday that policy makers expect the economy to "slow noticeably" this quarter. His comments caused major indexes to fall...

A strong currency reflects booming commodity exports and sound public finances. But not everyone is cheering. IT HARDLY came as a surprise when, on September 21st, the Canadian dollar crossed a symbolic threshold and overtook its American counterpart in value for the first time since 1976. Since January 2002, when Canadians needed C$1.61 to buy a greenback, the loonie (so nicknamed after the aquatic bird depicted on the dollar coin) has been pushed up by world demand for Canada's commodities. Yet even hard-bitten currency traders cheered out loud as the loonie inched towards parity, and then beyond. David Watt, a...

President George W. Bush on Wednesday said China would be "foolhardy" to attempt to push down the dollar in retaliation for US pressure over Beijing's alleged currency manipulation.

The Plan to Disappear Canada 'Deep integration' comes out of the shadows. By Murray Dobbin, Vancouver If the machinations going on in this country regarding so-called "deep integration" were instead a communist conspiracy to take over the country (you will, of course, have to try hard to imagine this) the news media would be blaring the story. Pundits would pontificate, editorialists would erupt, security forces would be unleashed. Instead, a virtual conspiracy to make the country disappear through assimilation into the U.S. gets barely a mention.But news of the scheme -- formally called the Security and Prosperity Partnership of North...

U.S., China Clash on Currency Both Countries Assertive as Economic Talks Open in Beijing By Ariana Eunjung Cha Washington Post Foreign Service Friday, December 15, 2006; D01 BEIJING, Dec. 14 -- U.S. and Chinese leaders clashed publicly on the opening day of strategic economic talks, with Treasury Secretary Henry M. Paulson Jr. pushing China to revalue its currency and Chinese Vice Premier Wu Yi saying Americans do not have a full understanding of the situation....

FIAT and CREDIT – “The coming Financial Holocaust�   By Nigel Maund June 1, 2006   clivemaund.com Setting the Scene This article builds on earlier essays by the writer based on a similar theme. However, as the reader will see, this gold boom cycle will be like none before it, and, as is often the case in human affairs, events of the past, whilst similar in outline, may differ significantly from presently unfolding events. To quote Winston Churchill, they are "variants on a familiar theme". That theme is determined by repetition of man's own inherent weaknesses: lust, greed and...

The US dollar suffered a severe sell-off on Friday, taking it to its weakest level against a trade-weighted basket of currencies since October 1997, as fears about the US current account deficit crossed world markets. Worries about US inflation, which have intensified since this week's meeting of the US Federal Reserve's rate-setting open market committee on Wednesday, sparked further sharp losses for US stock markets. The Nasdaq Composite fell a further 1 per cent in morning trading after its 2 per cent fall on Thursday.

With gold at a 26-year high, buyers and sellers in Madison have taken note and are trading briskly in the precious metal. Small investors are cashing in their holdings while buyers are scrambling in hopes that prices will continue to rise. Gold hit $728 an ounce Thursday, up from $525 in January. Prices dipped on Friday, closing at around $711 an ounce. "You're probably going to see it crest over $800 (an ounce)," said Mark Hermanson, co- owner of Capital City Coins & Jewelry in Monona. "There hasn't been much interest in gold and silver bullion. Three years ago when...

TOKYO, May 1 (Reuters) - The dollar struck a seven-month low against the yen and a one-year low against the euro on Monday, extending a slide as the Federal Reserve appears set to soon end a two-year run of credit tightening. A renewed focus on U.S. deficits after last month's meeting of Group of Seven industrialised powers, worries about Iran's nuclear ambitions and deteriorating technical signals have pummeled the dollar across the board. The yen gained across the board on solid buying by foreign hedge funds and investment banks, while some Japanese players squared positions heading into the country's Golden...

The current account deficit widened to its highest level ever in January.As the deficits grows, due to loose monetary policy and overspending, so do the worries about the US dollar and economy. Here's an interesting link to a negative economic assesment from respected Swiss economist Dr. Marc Faber ("Dr. Doom"). Dr. Faber is famous for correctly predicting asset bubbles, such as the that led to the 'Asian Flu'.

The Nikkei share average slid 2 percent on Monday as tech firms such as Advantest Corp. (6857.T) fell on a decline in the dollar and after U.S. shares were battered during Wall Street's biggest loss in nearly three years. Internet stocks such as Softbank Corp. (9984.T) dropped on the lingering effects of an investigation by prosecutors into Livedoor Co. (4753.T) on suspicion that the Internet portal had spread false information to investors. Reports of the investigation emerged last week and sent the stock market tumbling. Analysts said quarterly earnings, which are set to peak later this month, kept institutional investors...

LONDON (Reuters) - The dollar hit a 27-month high against the yen on Monday and edged closer to recent two-year lows versus the euro and sterling as greenback buying on yield advantage gathered momentum after a long U.S. weekend. In the absense of major data on Monday, investors, coming back from the Thanksgiving holiday weekend, pushed the dollar higher in anticipation of further rises in U.S. interest rates. The euro kept a low profile as investors awaited European Central Bank speakers including chief Jean-Claude Trichet ahead of a widely-expected 25 basis point rate hike this week. But the outlook beyond...

Technical Overview · British Pound Heads To 1.7000· Swiss Franc Sees 1.3500 In Its Future· New Zealand Dollar Fails To Capture .6900 Traders Corner:Reality or wishful thinking, it’s a very delicate balance when it comes to trading. As a trader I always learned not to let the wishful thinking cloud my judgment. I never let such notions as hopes and dreams distort the reality of the market. At one point when I found myself grasping at straws in a sinking trade I realized that no matter what I think, wish or hope, the market will do what its need to...

TOKYO (Reuters) - The dollar clung close to a two-year high against the euro and a 27-month peak versus the yen on Tuesday as more investors flock to the U.S. currency for its widening yield advantage. The yen came under pressure after Japanese Prime Minister Junichiro Koizumi made a rare comment on central bank policy, saying it was too early for the Bank of Japan to end its ultra-loose "quantitative easing" until deflation is defeated. Koizumi's remarks on Monday added to a chorus of government officials calling for the BOJ, which gained political independence just in 1998, to work with...

LONDON (Reuters) - The dollar remained firm on Tuesday near this week's three-month highs against the euro and 16-month peaks versus the yen as a Federal Reserve official joined the hawkish chorus on U.S. interest rates. The dollar also hit a two-month high against sterling and against an index of major currencies as investors priced in prospects for the Fed to press ahead with its 15-month credit-tightening campaign. Atlanta Fed President Jack Guynn told Reuters in an interview on Monday that the Fed's tightening campaign still has "a ways to go" before completion. Analysts said strong data, equity inflows and...

TIANJIN: Chinese Premier Wen Jiabao on Sunday rejected foreign pressure for an immediate shift in China's currency regime, saying China would set its own timing for reform and warning against what he called undue haste. In a speech before Asian and European finance ministers, Wen said China would "independently determine the modality, timing and content of reforms." He was speaking a day after Japanese Finance Minister Sadakazu Tanigaki said it would be in China's interest to quickly move to a more flexible exchange rate system. Wen reiterated that China's long-term goal remains what he called a "market-based, well managed...

TOKYO (Reuters) - The euro fell below $1.20 for the first time in 10 months on Friday as traders bet that euro zone interest rates will eventually be cut and make the dollar an even more attractive destination for investors. A combination of Sweden's central bank slashing interest rates this week and the Bank of England moving closer to lowering rates has thrown the spotlight on the European Central Bank. ECB officials have held firm that current rates at 2 percent are appropriate, but political pressure has mounted on the euro zone's central bank to do something about the region's...

Thursday, June 16, 2005 Establishment Beginning to Pay Attention Author: Jim Sinclair Since May the establishment has quietly begun to listen and will continue to do so. What I told you would transpire has in fact happened. You know this by the courage of Mr. Peter G. Peterson, a man of such stature that when speaking on financial TV he cannot be interrupted by producers who don't like his script. That is not to say that the drop dead, beautiful, central-casting interviewer did not try to place words in this gentleman's mouth. That strategy fell flat on its face. Mr....

LONDON (Reuters) - The dollar hit a nine-month high against the euro on Monday, extending recent gains made after upbeat U.S. data and comments from Federal Reserve chief Alan Greenspan fanned expectations of more U.S. interest rate hikes. Finance ministers from the world's rich nations (G8) during their weekend meeting in London kept up pressure on China to move toward more flexible exchange rates, but produced no clues as to the timing. Following last week's better-than-expected U.S. trade data and Greenspan's comments that the economy was on a "firm footing," the market is looking to see if this week's figures...

TOKYO (Reuters) - The euro hit an 11-month low against the yen on Tuesday, hurt by a bleak economic outlook for the euro zone and remarks by the European Central Bank chief which the market saw as a hint of interest rate cuts. The ECB will do "all it can" to reinforce consumer and business confidence, and economic reforms are fundamental to boost euro zone growth, ECB President Jean-Claude Trichet said in a discussion among central bankers from China, Europe and Japan in Beijing. "Trichet suggested that maybe he has to do something about interest rates," said a trader at...

The U.S. dollar is getting a boost from the slide in the euro caused by voters' resounding rejection of a European constitution in France and the Netherlands. The respite from the dollar's three-year tailspin offers a bit of hope for travelers who are looking to hold down the shocking cost of a European vacation since the dollar lost nearly half its value against the euro at the end of last year. "Americans will eat out more in Paris, buy more Burberry coats in London and more diamonds in Amsterdam," said Bob Whitley, president of the U.S. Tour Operators Association. The...

The under-fire euro fell further on Wednesday, slumping to an eight-month low against the US dollar amid rumblings over the long-term future of the eurozone. The fresh selling was prompted by a report claiming that Hans Eichel, the German finance minister, and Axel Weber, the president of the Bundesbank, were present at a meeting at which the possible break-up of European Monetary Union was discussed. The German Bundestag is also said to have commissioned a report on the legal repercussions of a country wishing to leave the EMU. Germany’s finance ministry labelled the talk “absurd”, while Mr Eichel and Mr...

FRANKFURT/BERLIN (Reuters) - The euro dipped sharply on Wednesday on reports that the possibility of a failure of European Monetary Union was discussed at a high-level meeting of German financial officials. A source who attended the meeting last week said Finance Minister Hans Eichel and Bundesbank President Axel Weber were present but that they did not take part in any discussion on the future of the system which gave birth to the euro. The Bundesbank said it would issue an official statement later on Wednesday in response to a report about the meeting in Germany's Stern magazine. Stern said the...

Congress and the Federal Reserve Erode Your Dollars May 23, 2005 Last week the US Treasury department issued a warning to the Chinese government with regard to its policy of pegging the value of the Chinese yuan to the US dollar. In essence, the Treasury department accuses China of artificially suppressing the value of its currency by tying it to the dollar, thus making Chinese imports very cheap and worsening our trade imbalance. This kind of bluster may serve political interests, but in reality we have nobody to blame but ourselves for the sharp decline in the US dollar. Congress...

TOKYO (Reuters) - The dollar rallied to a seven-month high against the euro on Monday after a run of surprisingly upbeat data eased worries that the United States may not attract enough capital to fund its huge external deficit. An above-consensus rise in new jobs and retail sales in April and a narrower-than-expected trade deficit in March have fueled buying in the dollar, pushing the single European currency below its major support level this year. "Investors had preferred the euro. But now they are shifting some of their funds back to the dollar," said Takehiko Jimbo, a forex sales manager...

FRANKFURT, Germany, March 1st, 2005 (AP Online via COMTEX) -- The dollar rose Tuesday against the euro as traders looked ahead toward testimony from U.S. Federal Reserve Chairman Alan Greenspan expected to support the U.S. currency. The euro fell to $1.32 in early European trading, from $1.3250 in New York late Monday. The British pound was also down, trading at $1.9200 from $1.9220 on Monday. The dollar bought 104.58 Japanese yen, marginally more than 104.52 yen on Monday. Greenspan is to testify Wednesday before a U.S. congressional committee and analysts expect him to stress a strong dollar. The dollar slipped...

The US dollar rose to a three-month high against the euro on Monday amid further signs that market sentiment is warming towards the greenback, temporarily at least.The dollar moved markedly higher in US trade, with dollar bulls pointing to the unveiling of the US budget for fiscal year 2006, which reiterated President George W Bush’s intention to begin dealing with the burgeoning fiscal deficit.However while this appeared to be evidence of the “voice of fiscal restraint” alluded to by Federal Reserve chairman Alan Greenspan in a keynote speech on Friday, the budget contained little new.Paul Mackel, currencies strategist at...

The biggest chatter in the markets today is about the article in the Financial Times that talks about the shifting of central bank reserve positions from dollars to euros. This is something that we have warned about for some time now in previous editions of Daily Fundamentals as well as in our 2005 currency outlook. Russia has already announced their intentions to shift their mix of reserve allocations. The central banks of oil exporters in the Middle East have also reduced their dollar holdings over the past 3 years. According to the report, 90 percent of central bank portfolio...

LONDON (Reuters) - The dollar rose slightly in the first trading session of 2005 on Monday, gaining more than a cent from recent record lows against the euro as investor selling paused ahead of U.S. economic data this week. However, analysts said persistent imbalances in the U.S. economy will likely continue to weigh on the dollar in 2005 after pushing the euro up about 8 percent to record highs last year. Later on Monday, the U.S. Institute of Supply Management's manufacturing survey is due. A Reuters poll forecast the index for December would edge up to 58.1 from 57.8 in...

When four hurricanes hit us Floridians during this past summer, the United Nations never showed up to help. Perhaps they were simply gathering their resources to help the victims of the next disaster somewhere other than on U.S. soil. Then again, maybe not, since they are now screaming for money to help the tsunami victims and going so far as to call the United States "stingy" in our response. In addition, President Bush never sent direct monetary aid to those individuals affected in Florida. At best, some low interest loans may have been made available once FEMA did what it...

LONDON (Reuters) - The euro hit a record high against the yen on Thursday and remained within sight of this week's all-time peak versus the dollar as its bull run continued a thin market. The single currency rose above 141.60 yen in thin Tokyo trade, extending Wednesday's gains on technical moves and on concerns that Sunday's tsunami that has killed over 85,000 people around the Indian Ocean could hurt economic growth throughout Asia. "I think the tragic events that have occurred over the past few days in Southeast Asia may be having an impact on the yen," said Kamal Sharma,...

LONDON (Reuters) - The euro set a record high against the dollar for the fifth session running on Wednesday and tested last year's lifetime high against the yen as investors' bearish views of the U.S. currency dominated markets. Trading volumes were thin in the holiday period between Christmas and New Year. There was also little news to turn investors' focus away from their worries about the burden of the U.S. current account deficit on the dollar and about the ability of the U.S. economy to attract enough money to plug this shortfall. "The euro has been strong for a few...

LONDON (Reuters) - The dollar teetered within sight of the previous day's record low against the euro on Tuesday as the market remained confident central banks would not stand in the way of the greenback's decline. Mixed economic news from Japan had little market impact as traders remained fixated on the United States' huge current account deficit and the need for a weaker currency to correct it. The dollar is on track to notch up its third consecutive year of losses in 2004 and most analysts think its slide is not over yet. "There is a very strong consensus that...

LONDON, Dec 7th, 2004 (United Press International via COMTEX) -- Members of the world's crude oil cartel have been cutting back on U.S. dollar-denominated holdings for three years. The Bank for International Settlements, in its latest quarterly report, notes members of the Organization of Petroleum Exporting Countries have cut the proportion of deposits held in dollars from 75 percent in the third quarter of 2001 to 61.5 percent, the Financial Times reported Tuesday. And, in cash terms, OPEC members' stock of dollar-denominated deposits has fallen by 4 percent since 2002, the bank said. How many Opec member oil exporting...

The dollar hit a new all-time low against the euro, which rose to $1.3335 on Tuesday as new figures showed that U.S. economic growth in the third quarter was stronger than previously estimated. In late New York trading, the euro eased back to $1.3280, below its intraday high but still above Monday's late rate of $1.3273. The dollar's weakness has been fueled by concern over the U.S. trade and budget deficits, and analysts say markets are paying only limited attention to other economic data against that background. The dollar hit its low against the euro, whose previous record of...

"Thanks a billion!" reads a banner hanging at the entrance to the Chicago Mercantile Exchange. The message was posted last month when the number of trades handled by the CME's Globex electronic trading system, which was launched 12 years ago, surpassed 1bn. A less advertised - but more telling - statistic is the speed with which the CME's flagship Eurodollar contracts have shifted from "open outcry" trading to Globex. In January, when the CME launched an effort to "migrate" Eurodollar trading from its trading pits to the computer, only 9.6 per cent of Eurodollar contracts were traded on Globex....

It rises, it falls, it's bought, it's sold. On how much of our fate does the dollar's height have hold?"DOWN AND DOWN I go, . . . loving the spin I'm in" might have been written by Harold Arlen and Johnny Mercer as an anthem for the dollar. As it spins down, cries of both glee and anguish are heard in the land, and economists scramble to offer explanations.Some of these experts are confessing confusion, as all--well, almost all--signs point to dollar strength. The latest jobs report shows that the economy is steaming ahead. The Fed has again raised interest...

TOKYO (Reuters) - The dollar tumbled to eight-month lows against the euro and six-month troughs versus the yen on Monday as worries persisted about the outlook for the U.S. economy. The dollar also fell sharply to eight-year lows against the Swiss franc and two-month lows versus sterling, with traders citing a close upcoming U.S. presidential election as another reason to sell the currency. "People are talking about all kinds of things that are bad for the dollar," said Mitsuo Imaizumi, deputy general manager of forex and international bonds at Daiwa Securities SMBC. "We have the twin deficits, officials hinting a...

HAVANA – Officials suddenly halted most of the dollar sales that Cubans have come to count on and warned of higher dollar prices for food and gasoline. They blamed new U.S. measures meant to undermine the island's communist government. Scores of agitated people lined up for last-minute purchases at late-night variety stores after the official declaration was read on Cuban state television shortly before 8 p.m. Monday night. The measure could have dramatic effect on everyday life in Cuba, where hard-currency stores offer plentiful goods, from soap to spark plugs, that are available in scant quantities, if at all, at...

<p>Don't look now, but the long-suffering U.S. dollar is enjoying a mini-rally. Will earnings suffer?</p> <p>NEW YORK (CNN/Money) - If you're an American planning a trip this spring to Europe, the United Kingdom or Australia, have we got good news for you: the U.S. dollar looks like it's making a comeback, meaning your vacation will be a little bit cheaper than last year, when the greenback was getting hammered.</p>

Friday, Apr. 9, 2004. Page 5 Russia 'Frustrated' UN Iraq Sanctions By Jesse Westbrook BLOOMBERG Bloomberg John Negroponte WASHINGTON -- Russia, France and China blocked enforcement of United Nations sanctions on Iraq, contributing to former dictator Saddam Hussein's alleged theft of money from the UN-administered oil-for-food program, U.S. Ambassador John Negroponte told the U.S. Congress on Wednesday. Senator Richard Lugar, an Indiana Republican, asked Negroponte at a Senate Foreign Relations Committee hearing if the three countries were unwilling to impose "strict" guidelines that would have prevented abuses of the program, which allowed Iraq to sell oil to buy medicine and...

Globalization Dissected Lou Dobbs and Protectionists, please take note! by Hugo Salinas Price President Mexican Civic Association Pro Silver -------------------------------------------------------------------------------- (This article is translated into English from the original Spanish, by its author. The original article at this website, www.plata.com.mx, is "Disección de la 'Globalización'". Some slight modifications have been made to the English version.) -------------------------------------------------------------------------------- The globalization of the world economy which we have been experiencing these past decades has not been a sound and inevitable process, nor is it a result of the forces of supply and demand in a liberalized world that impose painful but beneficial changes...

China is studying a possible plan to link the exchange rate for its currency to a group of 10 foreign currencies, dropping its politically volatile direct tie to the US dollar, a government newspaper said. Washington wants China to raise the value of its yuan and eventually let it trade freely in world markets. US officials say the current fixed exchange rate is too low, driving up China's trade surplus with the United States - expected to top $US120 billion ($A162.87 billion) this year - by making its exports unfairly inexpensive. The report by the China Business Post didn't say...

Pound surges to five-year high against US currency. Buffett also said to be betting against greenback ________________________________________________ The pound surged against the dollar yesterday amid speculation that Warren Buffett and George Soros, the world's most famous speculators, are betting the US currency will plummet. Sterling powered to a five-year high against the dollar for a second day as concerns over the US current account deficit continued to outweigh evidence of a rebounding economy. Traders believe selling the dollar is a one-way bet, and some latched on to rumours that speculators were building "short" positions on the dollar - betting it...

US economy is running out of fuel: Economist Unsustainable imbalances will impact US dollar, markets (SINGAPORE) The US economy, which surged at a stunning 7.2 per cent annual rate in the third quarter, is fast running out of fuel because its underlying fundamentals are 'very, very weak' - with potentially serious effects on markets as well as the US dollar, Morgan Stanley's chief global economist said yesterday. Speaking at the annual Morgan Stanley's Asia-Pacific summit, Stephen Roach pointed to a number of imbalances that cannot be sustained: Over 1995-02, the United States accounted for 96 per cent of global GDP...

Today the currency markets are flirting with the US dollar cash index at 103.80. The break point to new lows for the USD will occur when the index breaks and holds below 103.50. On a parallel track, Jim Sinclair an expert in precious metals famous for managing the damage of the Hunt brothers failed attempt to corner the silver market, raised two talking points regarding the inverse strength of gold against the dollar. First, Sinclair talked about how the "discovery" process in the "Burnett" vs. Saudi Arabia lawsuit might cause the Saudi's to exacerbate a pre-existing systemic weakness in the...

SEOUL, South Korea (CNN) -- North Korea will stop using U.S. dollars from next month, in an apparent retaliatory move after Washington halted oil shipments to Pyongyang. The measure is the latest in a continuing diplomatic sparring with the United States that has increased tensions since U.S. President George Bush labeled the communist state part of an "axis of evil" in January and North Korea's recent admission it was pursuing a nuclear weapons program. China's Xinhua news agency reported that North Koreans and foreigners will need to convert U.S. dollar accounts at the state-run Korean Trade Bank into euros or...