Thu, 23 May 2013 22:54:31
Dollar recovers from 2-week low versus yen, focus on Nikkei
The dollar recovered from two-week lows against the yen on Friday as a safety-bid for the Japanese currency ebbed after the Nikkei share average rebounded from the previous day's 7.3-percent plunge and Wall Street regained some stability by the close. Global stocks and commodities markets sold off on Thursday, led by Japanese stocks suffering their worst one-day loss in two years, as investors were spooked by weak Chinese factory activity data and the prospect of an earlier-than-expected roll-back of U.S. stimulus. "Adjustments are important part of the market. You can't have a one-way move forever. So yesterday's big adjustment was necessary, I think. But if the Nikkei rebounds, it will become easier to buy the dollar," said Bart Wakabayashi, head of forex at State Street Global Markets. The Nikkei rose 1.5 percent in early Friday trade. Overnight on Wall Street, U.S. stocks slipped but finished sharply off their session lows. The dollar tacked on 0.4 percent in early Asian t..
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Thu, 23 May 2013 02:49:54
South Korea's economic problems aren't made in Japan.
That isn't the way it looks in the two rival exporters' stock markets. Investors convinced that Japan's weakening yen will help its companies claw global market-share back from Korean competitors have bought almost $75 billion worth of Japanese stocks so far this year. Part of that appears to have come at the expense of South Korea, where foreign investors have sold nearly $6 billion of shares. Japan's benchmark stock index has thus soared 50 percent this year on hopes Prime Minister Shinzo Abe can revive the economy and with it the fortunes of big exporters such as Toyota Motor Corp and Panasonic Corp. Stocks in Seoul have meanwhile stagnated, with Samsung Electronics Co Ltd down around 1 percent. The problem for Korea had seemed obvious: while the yen has slid 20 percent against the dollar over the past year, the won has climbed by a third against the Japanese currency. In theory, that makes Korea's exports more expensive relative to Japan's, enabling Japanese companies to un..
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Tue, 21 May 2013 03:58:11
Dollar resumes rise against yen, Bernanke key to more
The dollar rose against the yen on Tuesday after a Japanese minister clarified remarks about the yen's drop, but many awaited the Federal Reserve chief's testimony before adding to bets on a stronger U.S. currency. Speculation the Fed will trim its bond purchases sooner than expected has mounted given signs of an improvement in the U.S. labour market. Chairman Ben Bernanke testifies to Congress on Wednesday and his words will be combed for clues on the timing. If Bernanke reiterates his ultra-loose monetary policy stance, the dollar could give up some of its gains against most major currencies. However, any hint asset purchases could be wound down later this year would give the dollar index, which has risen 5 percent this year, a huge boost, traders said. The index, which measures the dollar against a basket of six currencies, was up 0.12 percent at 83.839, not far from Friday's peak of 84.371, its highest since July 2010. The dollar was up 0.3 percent at 102.65 yen after Japane..
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Mon, 20 May 2013 06:47:47
Yen edges up on minister's comments, could dip again
The yen rose from a 4-1/2-year low against the dollar on Monday after Japan's economy minister suggested the country's currency might have weakened enough, leading some investors to cut hefty bets against it. The dollar fell 0.6 percent to 102.55 yen, having slid about 1 percent to 102 in the Asian session. The euro lost 0.5 percent to 131.85 yen after plumbing 131.045. Last Friday, the dollar reached a 4-1/2-year high of 103.32 yen, while the euro hovered near a 3-1/2-year peak of 132.78 yen. But analysts said any sharp dip in the dollar against the yen was a buying opportunity even after Economy Minister Akira Amari said the yen's excessive strength has largely corrected and further weakness could damage Japan's economy. The Bank of Japan holds a policy meeting on Tuesday and Wednesday. "Dollar/yen had overshot both from a technical as well as from the extreme short positioning that had seen against the yen," said Alvin Tan, currency strategist at Societe Generale. ..
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Thu, 16 May 2013 21:27:08
Stronger currency enhances appetite for dim sum
Despite recent volatility in the offshore yuan market, the demand for bonds denominated in the Chinese currency is likely to remain strong as the yuan's appreciation trend looks intact. An HSBC index measuring total returns in the dim sum bond market has gained more than 1.5 percent this year. That beats returns in the Chinese onshore bond market by more than one percentage point and is about even with how Hong Kong's generally weak stock market has fared in 2013. Since the start of April, returns on dim sum bonds have been boosted by the Chinese currency's solid performance in the face of a resurgent U.S. dollar even as other Asian currencies have remained broadly flat. The yuan has appreciated more than 1 percent against the dollar since the end of March. Market participants expect further yuan gains for two reasons. One, recent regulatory moves to clamp down on hot money flows being disguised as trade settlement have prompted analysts to believe that Beijin..
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