| (AFX UK Focus) 2007-02-09 00:00 GMT: Forex - US dollar mixed in Sydney morning following ECB, BoE rate decisions
SYDNEY (AFX) - The US dollar was higher against the yen here and relatively flat against the euro after the overnight decisions from the European Central Bank and Bank of England to keep their official interest rates unchanged, dealers said. They said the euro gathered support despite the ECB keeping interest rates at 3.5 pct, with the central bank signalling a likely interest rate hike at its March meeting. Dealers said the yen fell overnight as traders increasingly discount the likelihood that tonight's G7 finance ministers meeting will state concern over the currency's weakness. Comments from Bank of Japan board member Hidehiku Haru that there was no need to rush a rate increase also removed some of the support for the yen gathered over this week. At 10.13 am here (2313 GMT Thursday), the dollar was at 121.17 yen from 121.07 in late New York trading while the euro was at 1.3040 usd, slightly up from 1.3038 in New York.
G-7 finance ministers meeting in Essen, Germany, called upon China to allow its currency, the yuan, to appreciate
G-7 finance ministers meeting in Essen, Germany, called upon China to allow its currency, the yuan, to appreciate. Contrary to pre-meeting leaks, the yen, which many say is undervalued, was not singled out. The G-7 comprises the world's largest industrialized democracies: the United States, the United Kingdom, France, Germany, Italy, Canada and Japan. SMART LIVING & INVST. ARTICLES G-7 finance ministers meeting in Essen, Germany, called upon China to allow its currency, the yuan, to appreciate
Media Release
Contrary to pre-meeting leaks, the yen, which many say is undervalued, was not singled out.
READ MORE>> What happens to US Dollar as the deflation takes hold of the economy?
Alan Hershey
America will export more than it imports. The Asian and European currencies will go down due to lack of buying power while US Dollar will go up steadily.
Canada Afternoon: C$ Up Sharply On "Spectacular" Jobs Data
TORONTO (Dow Jones)--The Canadian dollar ended sharply higher on Friday, reaching its highest levels since mid January, after unexpectedly robust jobs data for January propelled the currency higher in early trading. The U.S. dollar was trading at C$1.1721 at 3:35 p.m. EST (2035 GMT), from C$1.1773 at 8:00 a.m. EST (1300 GMT), and from C$1.1852 late Thursday. The U.S. dollar was in the C$1.1845 area at 7:00 a.m. EST (1200 GMT) when Statistics Canada reported that employment rose 88,900 in January. The market was expecting a gain of 10,000 jobs. The unemployment rate rose to 6.2% in January from 6.1% in December. The U.S. dollar tumbled lower, hitting a low at C$1.1746 before rebounding. It stabilized in that area for a while, and then broke below support in the C$1.1730 area slipped to its weakest levels since mid January.
Foreign currency reserve assets hit US$133.7b
Hong Kong's foreign currency reserve assets rose to US$133.7 billion in January, up US$500 million on December last year, the Monetary Authority says. This represented over six times the currency in circulation, or about 37% of Hong Kong dollar M3. Including unsettled forward contracts, the foreign currency reserve assets also stood at US$133.7 billion. Hong Kong is the world's eighth largest holder of foreign currency reserves, after the Mainland, Japan, Russia, Taiwan, South Korea, India and Singapore.
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Yen slides, market sees few surprises from G7
TOKYO -- The yen closed in on a four-year low against the dollar and a record trough versus the euro on Friday before a Group of Seven finance ministers' meeting that is unlikely to seriously tackle the yen's weakness, investors said. The euro also drew support from comments from ECB President Jean-Claude Trichet, who signaled on Thursday that rates could rise in March and possibly later on in the year. The ECB left rates unchanged at 3.5 percent in the previous session. Market focus is on the statement that will follow the two-day G7 gathering, which starts in Essen, Germany, later in the day. Some investors were also selling the yen ahead of a market holiday in Japan on Monday. "The market is betting that the yen won't be included in the communique, which is why we're seeing buying in currencies against the yen," said a forex trader at a European investment bank.
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